CalPERS Proceeds With Caremark to Manage Pharmacy Benefits for PPO Health Plans.Business Editors SACRAMENTO, Calif.--(BUSINESS WIRE)--Aug. 5, 2002 Members of CalPERS self-funded plans PERSCare and PERS a. 1. Light blue; grayish blue; - a term applied to different shades at different periods. Choice can expect better pharmacy benefits and services from a contract awarded to Caremark Inc. by CalPERS Board of Administration. The Birmingham, Alabama-based pharmaceutical company has been chosen to administer prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, benefits for the two CalPERS preferred provider organizations pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. (PPOs). Caremark was among five bidders considered for a contract for 2003 through 2005. The current contract for PERSCare and PERS Choice is with Merck-Medco. The CalPERS Board ratified the selection of Caremark on May 15. The administrative process ended with the ruling of State Administrative Law Judge administrative law judge n. a professional hearing officer who works for the government to preside over hearings and appeals involving governmental agencies. They are generally experienced in the particular subject matter of the agency involved or of several agencies. Stephen J. Smith on July 29 that Merck-Medco's protest of the award "...lacks any significant evidentiary ev·i·den·tia·ry adj. Law 1. Of evidence; evidential. 2. For the presentation or determination of evidence: an evidentiary hearing. Adj. 1. or legal support, and must be dismissed." The three-year contract is for approximately $250 million in annual pharmaceutical spending. The PPOs currently provide health benefits to approximately 283,000 enrollees, but have been the fastest growing plan option offered by CalPERS. The CalPERS Board selected Caremark because it offers members lower costs, effective clinical and specialty pharmacy programs, and an exceptional customer service process. It has a good track record for letting doctors know where they stand with their peers in prescribing effective generic drugs, and for involving patients in self-care and disease management programs. CalPERS staff evaluated bidders' retail and mail order networks, formulary formulary /for·mu·lary/ (for´mu-lar?e) a collection of recipes, formulas, and prescriptions. National Formulary see under N. for·mu·lar·y n. , drug utilization programs, care management, customer service, and their capability to administer pharmaceuticals for subscribers of CalPERS health maintenance organizations (HMOs). Deloitte & Touche, a consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , aided staff in the evaluation process. Currently, each contracting HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, that CalPERS offers provides pharmacy benefits for its members. As part of its long-range plan, CalPERS may in the future consider the possibility of expanding its drug purchasing program to cover all of its 1.2 million health plan enrollees. "Merck-Medco, who has been our partner since 1989, will be a tough act to follow," said Allen Feezor, Assistance Executive Officer, Health Benefits. "Caremark's top management has committed to make this relationship an example for other purchasers. Given the critical importance of effective pharmacy management in the cost of coverage these days, we are excited about the potential of this new partnership with Caremark." CalPERS is the largest purchaser of employee health benefits in California and the third largest in the nation after the federal government and General Motors. It is the nation's largest public pension fund with approximately $149 billion in assets. For more information about CalPERS, visit our web site at www.calpers.ca.gov. |
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