Political Darkside – Political News and Commentary

CVS, the Nations second largest retail pharmacy wants more government money. With its corporate eyes firmly fixed on improving its market share and breathing life into it’s falling stock price, the colossal drug retailer is set to purchase Universal’s American Medicare Part D unit. In what industry insiders consider a coup and a perfect fit.

The New York Times says,
“Today’s transaction furthers CVS Caremark’s position as a significant player in one of the nation’s fastest growing segments of the pharmacy benefit management industry,” said Per Lofberg, President of Caremark Pharmacy Services, in a statement. “A growing portion of the country’s population will receive their prescription drug coverage under Medicare plans, driven both by age demographics and the anticipated shift of retirees from employer based coverage to Medicare that will likely result from health care reform.”

One of the problems we find when talking about Medicare is most Americans have no idea how it will affect their lives. As we get older, each of us moves closer to that inevitable conversation with a Medicare benefits specialist. 

The larger problem is how to manage escalating prescription drug cost, and by the way, Medicare rules prohibit the federal government from negotiating prescription drug cost with pharmaceutical companies. Unfortunately, under the current plan enacted in 2003, the American taxpayer will pay whatever price tag the big pharmaceutical companies decide is fair. In addition, out of control increases in prescription drug cost, may help to accelerate the process of restricting or even depleting a senior citizens cash flow and along with failing health ultimately forcing them into the Medicare Part D coverage gap or better know as the Medicare Donut. If you were wondering, what benefits plans are offered by Medicare and where CVS fits in take a look below .

Medicare offers four government funded benefit plans:

• Medicare Part A Hospital coverage
• Medicare Part B Medical Insurance
• Medicare Part C Medicare Advantage Plans
• Medicare Part D Prescription Drug Plans

CVS’s current focused is on Medicare Part D which has a projected expediture of $727.3 billion by 2018, but as you will find out, Part D may not be the only Medicare benefit plan capable of yielding substantial revenue.

Although purchasing Universal’s American Medicare Part D unit is great news for CVS Caremark not everyone is as enthusiastic. In 24 states around the country, Attorneys generals and the Federal Trade Commission are investigating allegations whether the company engaged in anticompetitive practices.
Over the years, CVS purchased many well-matched companies. In 1999, Highbeam.com said,
“… CVS, the second-largest U.S. drug retailer, leaped into the online drug business by acquiring Soma.com, an upstart Internet pharmacy, in a stock transaction valued at $30 million. The deal shows how pressure to get to market fast is compelling some brick-and-mortar companies to buy rather than build their way onto the Web. It also demonstrates how E-commerce and old-fashioned retailing can complement each other, rather than compete.”

In 2006, CVS purchased Minute Clinic. These clinics, regarded as the largest provider of retail-based healthcare clinics are located around country, staffed by board-Certified Nurse Practitioners and Physician Assistants and focus on treatable family illnesses.
As potential changes take place in the US health care system CVS Caremark continues to position itself to generate revenue from federal agencies. It is apparent that the president’s health care plan is creating a ripple effect that most Americans never considered. Clearly, when the US government agrees to purchase goods or services many companies around the country devise schemes to cash in.