CVS Caremark Research Illustrates How Innovative Pharmacy Benefit Plan Design Optimizes Generic Utilization

CVS Caremark Research Illustrates How Innovative Pharmacy Benefit Plan Design
Optimizes Generic Utilization
Data presented at the Academy of Managed Care Pharmacy (AMCP) Educational
Conference

WOONSOCKET, R.I., Oct. 13 /PRNewswire/ -- CVS Caremark (NYSE: CVS) presented
data at the Academy of Managed Care Pharmacy (AMCP) Annual Educational
Conference, which illustrates how innovative pharmacy benefit plan design can
impact generic utilization. The study further underscores how pharmacy
benefit managers (PBMs) can work with plan sponsors to manage costs and
improve health outcomes by working to change plan participant behavior through
increased engagement. The study found that implementing a $0 copay structure
for generic medications can be an effective strategy to increase generic
dispensing, with the generic dispensing rate (GDR) increasing to 60.8 percent
(a 4.2 percent increase) during the study period.

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"Our 2009 Benefit Planning Survey found that clients are more interested in
identifying opportunities to change plan participant behavior, rather than
shift costs," said Jack Bruner, Executive Vice President, CVS Caremark. "The
data presented at AMCP illustrates an example of how we can work with our plan
sponsors to change and optimize participant behavior in order to achieve
increased generic utilization. These types of partnerships enable us to
effectively reduce costs for both our client and their plan participants
without compromising quality or access."

In addition to an improvement in GDR during the study period, the analysis
found that the average participant cost share for generic medications
decreased almost 10 percent (9.4 percent decrease). In addition, the average
plan cost per 30 days of therapy also exhibited a slight decline, despite the
reduction in generic copayment rates. Prevalence of use in three key
preventative drug classes also increased significantly (participants on
cholesterol lowering therapy increased 13 percent, on antihypertensive therapy
increased seven percent and on diabetic therapy increased nine percent) as a
proportion of eligible patients.

"While some plan designs work to drive generic utilization by increasing brand
medication copayments, this study demonstrates that lowering the generic
copayment can also be an effective strategy to increase GDR," said Mr. Bruner.
"In addition, the data indicates that lowering the generic copayment may also
be associated with an increase in participants taking key preventative drugs,
which could positively impact adherence and overall health outcomes."

The study was designed to evaluate the results of plan design changes,
including implementation of a $0 copay for generic medications, on the GDR,
plan participant cost and impact of plan participant behavior changes on
health outcomes. During the study period, participants were allowed to fill
prescriptions for generic medications at a preferred retail pharmacy network
at a zero dollar copay. The study included 15,000 plan participants covered by
a self-funded employer group who were continuously enrolled under the benefit
for the duration of the study period (12/1/2007 through 7/31/2009).

About CVS Caremark
CVS Caremark is the largest provider of prescriptions in the nation. The
Company fills or manages more than 1 billion prescriptions annually. Through
its unmatched breadth of service offerings, CVS Caremark is transforming the
delivery of health care services in the U.S. The Company is uniquely
positioned to effectively manage costs and improve health care outcomes
through its more than 7,000 CVS/pharmacy and Longs Drugs stores; its Caremark
Pharmacy Services division (pharmacy benefit management, mail order and
specialty pharmacy); its retail-based health clinic subsidiary, MinuteClinic;
and its online pharmacy, CVS.com. General information about CVS Caremark is
available through the Investor Relations section of the Company's Web site, at
cvscaremark.com/investors, as well as through the press room section of the
Company's Web site, at cvscaremark.com/newsroom.

Media Contact:
Christine Cramer Jon Tashjian
CVS Caremark Weber Shandwick
(401) 770-3317 (617) 520-7118

SOURCE CVS Caremark

Media Contact: Christine Cramer of CVS Caremark, +1-401-770-3317 or Jon
Tashjian of Weber Shandwick, +1-617-520-7118