With this acquisition CVS will move from retailer to the nation's leading manager of pharmacy benefits manager, the middleman between drug companies and employees and others with drug benefits coverage that has become an attractive position despite recent challenges.
Wal-Mart's (WMT) recent bid to offer $4 generic drugs could present a threat.
According to this NYTimes.com article, these companies have become increasingly important gatekeepers in Americans’ health benefits. Pharmacy benefits managers administer the drug benefits coverage to the employees or members of its customers — big corporations, unions, government agencies, insurers and other organizations. They negotiate discounted prices and other terms for drugs that covered employees obtain through participating drug stores, and they also buy drugs directly from the pharmaceutical companies and distribute them by mail order.
Know More about health care benefits at HealthCareVox.com.
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