CVS 2012 Annual Report Download - page 9

people to get their medications, they are far more likely
to take them. It also points out the fact that not all
drugstores are created equal.
JON ROBERTS: Again, the adoption rate has been
tremendous. The program has gone from just under
11 million members in 2012 to nearly 16 million in 2013.
Many new PBM clients are adopting Maintenance
Choice right out of the gate. Adoption has been helped
by our recent rollout of Maintenance Choice 2.0. This
new version of the program enables clients with either a
mandatory or a voluntary mail plan design to participate
and achieve cost savings.
Q: PBM models, which have been relatively similar
in the past, appear to be diverging. Why is CVS
Caremark confident that its PBM/retail integrated
approach will succeed?
JON ROBERTS: When you look at CVS/pharmacy’s
share of our PBM book of business, you can quickly
grasp the value of our model to the overall enterprise.
In 2007, CVS/pharmacy had about an 18 percent share
of our PBM’s retail network claims. That percentage
has grown to 31 percent, an increase that significantly
outpaces the growth in CVS/pharmacy’s overall retail
market share. PBM plan members are choosing CVS/
pharmacy because we provide unmatched offerings at a
high level of service, which save them money and keep
them healthier.
TROY BRENNAN: We’re not suggesting that ours is
the only model that will work, but we’re confident in
our approach for a lot of reasons. For example, the
growth areas of Medicare, Medicaid, health insurance
exchanges, and accountable care organizations will
require a broader set of capabilities than those that
are available under the traditional PBM model. These
growing segments are also not as reliant on mail order,
so they offer a greater opportunity for us to influence
consumer and patient behavior at the local level.
MARK COSBY: As health care becomes increasingly
consumer-directed, local presence will become increas-
ingly important. We have more than 7,400 retail locations,
and more than 72 percent of our PBM members live
within five miles of one of our drugstore locations.
Q: Health care appears to be migrating to a
much more integrated system, with stronger links
between payors, providers, and patients. How are you
positioning CVS Caremark under this new paradigm?
TROY BRENNAN: We’ve been preparing for this across
our businesses. At MinuteClinic, the drive to increase
connectivity is already well underway. In fact, the integra-
tion of electronic medical records is one of the key
drivers behind the affiliations MinuteClinic has been
forming over the past couple of years with health
systems across the country. I’ll give you a quick example
of how this works. When a patient is treated at one
of our locations, the nurse practitioner can access
his or her medical record from the local collaborating
health system and identify any medication allergies that
could impact treatment. After treatment, that patient’s
MinuteClinic record is transmitted directly into the
health system’s electronic record for physician continu-
ity and potential follow-up. It’s all done seamlessly.
JON ROBERTS: Let’s look at a PBM member – we’ll
call her Anne – who walks into a CVS/pharmacy to pick
up her statin prescription. The pharmacist may receive
an alert that Anne should get a cholesterol test. Anne
can go right from the pharmacy counter to MinuteClinic
for the screening and get her results immediately.
Taking advantage of our new connections through
health information exchanges, we can also send a
complete record of all these interactions to Anne’s
primary care provider.
TROY BRENNAN: We are also working to provide
seamless integration for at-risk providers. Our collabo-
ration with HMSA, the Hawaii Blue Cross Blue Shield
program, is a good example of that. HMSA has been
moving to the patient-centered medical home model.
We’re preparing to send all of our adherence and gaps
in care-based messaging through the health informa-
tion network that HMSA has designed for the medical
homes. Our Longs Drugs pharmacists in Hawaii will be
reiterating the same messages to patients through the
Pharmacy Advisor program. We’re also going to open
up several MinuteClinics in Hawaii to support the
medical homes and provide the high level of informa-
tion exchange I’ve already touched upon. It’s a very
exciting partnership and a sign of the direction in which
health care in the United States is heading.
CVS CAREMARK 2012 ANNUAL REPORT
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