CVS ends alliance with Universal American

WOONSOCKET, R.I. and RYE BROOK, N.Y. CVS Caremark and Universal American Corp. announced today that their strategic alliance covering the Prescription Pathway Medicare Part D prescription drug plan (PDP) program will end as of Dec. 31, subject to regulatory approvals.

The program, which started in 2006, offered Medicare Part D prescription drug plans through Universal American's Prescription Pathway products in conjunction with Caremark Pharmacy Services, a subsidiary of CVS Caremark.

Upon dissolving the strategic alliance, SilverScript Insurance, 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 business that has been generated by the strategic alliance.

Tom Ryan, chairman, president, and ceo of CVS Caremark, stated “We have been very pleased with our alliance with Universal American, and have enjoyed great success with the Medicare Part D program. 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. The people at Universal American have been a pleasure to work with, and we will end this venture with appreciation for their efforts.”