Responding to Humana-Walmart in Part D

When we last took a look at the Medicare Part D business, there had been a flurry of activity including the launch of the first Part D PDP sponsor with a preferred design in the Humana Walmart Preferred Rx Plan. At the time:

- HealthSpring acquired Bravo Health, an operator of Medicare Advantage coordinated care plans in Pennsylvania, the Mid-Atlantic region, and Texas, and Medicare Part D stand-alone prescription drug plans in 43 states. This transaction moved HealthSpring/Bravo Health into the top 10 Part D providers.

- CVS Caremark’s agreement to acquire the Medicare Part D business of Universal American for approximately $1.25 billion. Universal American was a leading Medicare Prescription Drug Plan (PDP) sponsor. The acquisition more than doubled the size of CVS Caremark’s Medicare Part D program.

Recently, there has been another lively period with enrollment in Part D starting on October 15. These include:

- Coventry Health Care joined in partnership for 2012 with the nation’s largest and best known names in retail and pharmacy—Walgreens, Walmart, and Target—to offer a novel Medicare prescription drug plan known as First Health Value Plus (PDP). As Coventry’s newest Medicare Prescription Drug Plan, First Health Value Plus is the lowest premium, zero-dollar deductible Part D plan in the United States. First Health Value Plus is built on one of the nation’s broadest preferred pharmacy networks and offers lower member co-payments for prescriptions filled at any one of the almost 14,000 combined Walgreens, Walmart, and Target pharmacy locations.

- Aetna and CVS/pharmacy announced the launch of a new co-branded Medicare prescription drug plan. The new Aetna CVS/pharmacy Prescription Drug Plan (PDP) is available in 43 states and Washington, DC and offers Medicare beneficiaries outstanding value along with access to experienced CVS pharmacists and the convenience of shopping at their own neighborhood CVS/pharmacy. The plan offers a $26 monthly plan premium and has no deductible for generic drugs. Medicare beneficiaries who sign up for this plan and fill their prescriptions at a CVS/pharmacy will realize savings on their out-of-pocket prescription drug costs.

Will there be additional activities introduced for 2012?