CVS 2011 Annual Report Download - page 19

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CVS CAREMARK 17 2011 ANNUAL REPORT
The number of people in the U.S. age 65 years or older is projected to rise to 55 million by 2020, up
36 percent from 2010. On average, this population fills three times more prescriptions than people age
64 years or younger. As a result, it is expected that Medicare drug spending will increase 8.5 percent
annually over the next decade.
Medicare Part D prescription drug plans (PDPs) are likely to emerge as the dominant segment of this
business, and we are a strong and growing leader in this space. CVS Caremark began 2012 as the
insurer for approximately 3.6 million covered lives across our PDPs, and we also support the Medicare
business of approximately 40 PBM clients that sponsor their own PDPs and Medical Advantage
Prescription Drug (MAPD) programs.
Because mail order utilization is relatively low with Medicare, our more than 7,300 stores position us well
to serve the Medicare Part D population. With leading retail market positions in key sun-belt states, we
stand to benefit from this trend to a greater extent than most other pharmacy players. Additionally, our
retail pharmacists can play a key role in helping seniors choose the right plan for their specific needs.
M E D I C A R E PA R T D :
The aging of the U.S. population, coupled with health care
reform, are expected to be significant drivers of prescription
utilization in the coming years. CVS Caremark is poised to
benefit from these positive trends. The Medicare Part D
business in particular represents a growth opportunity that
CVS Caremark has comprehensively embraced.
Partial Involvement
THE INDUSTRY WAY:
Full Commitment