WOONSOCKET, R.I. (March 31, 2017) – CVS Health (NYSE: CVS) confirmed that its contract to provide specialty pharmacy services for the Blue Cross and Blue Shield Federal Employee Program (FEP) will terminate at the end of 2017.
Given that the contract expires at year end, the loss of this contract does not affect the Company’s 2017 financial results. The loss of this specialty pharmacy contract, which is expected to generate revenues of approximately $2.8 billion in 2017, is not expected to have a material impact on the Company’s operating profit in 2018.
As previously announced, under separate agreements which run through 2018, CVS Health will continue to provide integrated pharmacy benefit management (PBM) services, including mail service pharmacy and clinical care programs, to FEP’s more than 5.4 million federal employees, retirees and dependents.
About CVS Health
CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,700 retail locations, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with nearly 90 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com.
Investor Contact:
Nancy Christal
(914) 722-4704
Nancy.Christal@CVSHealth.com
Media Contact:
Carolyn Castel
(401) 770-5717
Carolyn.Castel@CVSHealth.com