Aimed at improving transparency, CareSource, Ohio's largest Medicaid managed-care provider, is switching its pharmacy benefit management (PBM) contract from CVS Caremark (CVS -0.3%) to Cigna's (CI +0.3%) Express Scripts. The new contract will commence on January 1, 2020.
CareSource President & CEO Erhardt Preitauer says, “We believe the current PBM model has significant room for improvement. [The company] saw an opportunity to reinvent the model with a focus on transparency, driving real value for stakeholders, building stronger partnerships with local pharmacies and controlling costs.”
CVS has been under the gun for more than a year after a 2017 study found that it charged taxpayer-funded companies like CareSource almost $200M more for prescription drugs than it reimbursed pharmacists.
The Express Scripts contract will feature transparent pricing that will be verified by an independent third party.
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