WOONSOCKET, R.I. CVS Caremark and Universal American Corp. announced on Wednesday that they are ending their alliance covering the Prescription Pathway Medicare Part D prescription drug plan as of Dec. 31, 2008.
Upon dissolving the alliance, SilverScript Insurance Co., which is CVS Caremark’s Medicare Part D PDP, and Universal American will each assume responsibility for the drug benefit of specified Prescription Pathway plan members to achieve an approximately equal distribution of the value of the business.
Since its inception of the program in 2006, Universal American has offered Medicare Part D prescription drug plans through its Prescription Pathway products in conjunction with Caremark Pharmacy Services, a subsidiary of CVS Caremark.
“As we approach the end of the initial 3-year term of our joint venture, and in light of CVS’ merger with Caremark, we decided to consolidate our Part D business under our SilverScript PDP,” stated Tom Ryan, chairman, president and chief executive officer of CVS Caremark. “The people at Universal American have been a pleasure to work with, and we will end this venture with appreciation for their efforts.
The move will not affect the Prescription Pathways Part D plan offering in 2008, in which about 550,000 members are currently enrolled.