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PCS SELECTED TO MANAGE BENEFITS FOR 3.1 MILLION MEMBERS

 PCS SELECTED TO MANAGE BENEFITS FOR 3.1 MILLION MEMBERS
 SAN FRANCISCO, July 15 /PRNewswire/ -- PCS Inc. announced today that it has been selected by the Blue Cross and Blue Shield Federal Employee Program to administer a managed prescription drug benefit program for 3.1 million federal employees, retirees and dependents. The Service Benefit Plan for federal employees represents the nation's largest employee benefit program.
 In making the announcement, Robert C. Johnson, chairman and chief executive officer of PCS, said, "The selection of PCS to administer this new program affirms the company's position as the premier provider of managed prescription care services."
 PCS will administer a broad range of managed care measures to assure the delivery of quality, cost-effective pharmaceutical products and services. A major element of the program is the ability of PCS to use RECAP(R), an on-line electronic network, to provide prospective, point- of-use and retrospective drug utilization review.
 PCS Inc. is a subsidiary of McKesson Corp. (NYSE: MCK), the nation's largest distributor of pharmaceuticals.
 The Blue Cross and Blue Shield Association issued a press release this morning about the selection of PCS for the Blue Cross and Blue Shield Federal Employee Program. That press release is repeated below:
 WASHINGTON, -- The Blue Cross and Blue Shield Association announced today that PCS Inc. has been selected to administer a new retail pharmacy program proposed for the Service Benefit Program for federal employees, which currently covers 3.1 million members.
 The contractual arrangements between the two organizations are being worked out now. The resulting contract then will be submitted to the U.S. Office of Personnel Management (OPM) for approval. In addition, OPM approval of the benefit package that will be offered to Blue Cross and Blue Shield federal subscribers is necessary before the program can be effective beginning in January 1993.
 The retail pharmacy program represents a comprehensive approach to managing prescription drug benefits by combining a preferred pharmacy network, rebates from pharmaceutical manufacturers, drug utilization review and effective claims administration.
 The PCS network of preferred pharmacies will give subscribers the opportunity to receive discounts on the retail price of prescription drugs, as well as a higher insurance reimbursement level. Subscribers continue to have a free choice of pharmacies; however, if they choose a pharmacy not in the network, subscribers will pay the full retail price for their prescriptions and be reimbursed at a lower level. More than 21,000 independent and chain pharmacies have been included in the PCS network to ensure easy access for Service Benefit Plan members.
 A manufacturer's rebate program would achieve savings directly from the manufacturers of certain drugs based on purchase volumes. PCS also will provide a drug utilization review program to identify potential quality problems, such as adverse drug interactions, and to provide effective education programs.
 In total, the Blue Cross and Blue Shield Association anticipates savings of more than $100 million on drug costs under this program. "We needed to look at a retail pharmacy managed care program because prescription drug costs are the fastest growing component of our annual expenditures," said Alan Spielman, vice president of the Blue Cross and Blue Shield Association's Federal Employee Program.
 "We estimated that in 1992 we will spend about $1 billion for prescription drugs, and that figure could reach $1.2 billion in 1993 if no change were made," Spielman continued. "This program will provide both active and retired federal employees with a sound opportunity to limit their out-of-pocket expenditures for prescription drugs."
 The Blue Cross and Blue Shield Association's Federal Employee Program has offered health insurance benefits to federal workers and retirees for 30 years. It is the largest health benefit plan available to federal employees and retirees, with 41 percent of the market.
 -0- 7/15/92
 /CONTACT: Charles Pool of McKesson, 415-983-9470/
 (MCK) CO: McKesson Corp.; PCS ST: California IN: HEA SU:


RM-MM -- SF005 -- 9783 07/15/92 18:18 EDT
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Date:Jul 15, 1992
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