Co-branded Aetna, CVS Medicare Part D plan to hit 43 states
Aetna and CVS/pharmacy announced last week a co-branded Medicare prescription drug plan available in 43 states and Washington, DC, in a deal that will leverage the retail base of more than 7,200 CVS and Long Drug stores across the country.
The announcement comes as Aetna continues to seek more ways to broaden its product lines, as well as build a strong business in the Medicare market. In June, the company acquired the Medicare supplement business of Genworth Financial, a book of business that brought 145,000 new members to the company.
"This important growth opportunity comes at a time when the Medicare population is anticipated to increase as 'Baby Boomers' reach age 65," said Aetna Chairman, Presdient and CEO Mark Bertolini at the time of the Genworth deal. "Medicare supplement is expected to be a fast-growing product in the coming years as individuals seek peace of mind for out-of-pocket costs and employers look for added retiree coverages."
The same can be said of seniors looking for Medicare Part D coverage to help them with the cost of prescription drugs. The Part D product will offer beneficiaries who fill their prescriptions at CVS with in-network savings that include $3 co-pays for generic drugs and will save $10 on copayments for non-preferred generic and preferred brand prescriptions.
"With 75 percent of the U.S. population in the markets in which CVS/pharmacy operates living within 3 miles of a CVS drugstore, Medicare beneficiaries will have convenient access to the prescription drugs they need through this plan," said John Chomeau, head of Aetna Medicare, in a press release announcing he deal.
For CVS, the deal builds upon the relationship betwee its parent company, CVS Caremark, and Aetna. Last summer, Aetna inked a 12-year pharmacy benefits management services deal with CVS Caremark. Aetna's PBM business is substantial, comprising more than 9.7 million customers and members who represent about $9.5 billion in drug spending each year.
The announcement of the new Part D plan comes just a couple or weeks ahead of the Medicare open enrollment period, which this years runs from Oct. 15 to Dec. 7.
