CVS 2013 Annual Report Download - page 7

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5
2013 Annual Report
Can we give patients
more while payors
spend less?
We are uniquely positioned to engage members and promote healthier, cost-effective
behaviors. At the same time, we are helping payors to reduce health care costs and
improve outcomes. This is especially important as payors grapple with the rapidly rising
costs and complexities of treating specialty patients.
“Our approach to specialty is about providing inte-
grated, coordinated solutions to managing specialty
patients rather than just managing their medications,”
notes Alan Lotvin, CVS Caremark’s executive vice
president of specialty pharmacy. “This is critical be-
cause specialty utilizers represent just 3.6 percent of
patients, but they consume 25 percent of a payor’s
total health care costs.”
CVS Caremark now has assets to manage all
aspects of our specialty patients’ health care spend.
These assets include market-leading home infusion
services with Coram, the integration of rare disease
management with specialty through Accordant, an
integrated retail/mail option for specialty patients
with Specialty Connect, and a unique automated
medical claims management technology based on
our NovoLogix platform. This combination of tools
enables comprehensive trend management for all
specialty drugs and the associated medical costs.
Many other opportunities exist across our enter-
prise to save payors and plan members money while
ensuring the quality of care. For example, our 7,600
retail locations make CVS/pharmacy an attractive
option for other PBMs that want to create preferred
or narrow pharmacy networks. CVS Caremark was
also the first PBM to roll out a formulary exclusion
process that removed select branded drugs in favor
of more cost-effective alternatives. This program is
expected to save our clients approximately $1 billion
in 2014, and significant opportunity remains for tradi-
tional and specialty drugs.