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 The news comes at a time when Anthem is close to expiration of its
current contract with pharmacy benefit manager (PBM) Express Scripts
Holding Co.
Express Scripts in April said it is most likely to lose its top
client Anthem after the health insurer accused the company of
charging too much for drugs and operational failure in 2016.
Anthem and Express Scripts are involved in a 10-year contract that
expires in 2019 end.
CVS Health said the five-year agreement with Anthem would begin in
2020 and run through the end of 2024.
The drug retailer would provide services such as processing claims,
patient messaging and point-of-sale engagements for the new PBM
unit, IngenioRx.
CVS Health said it expects to incur implementation charges related
to the transition of members, but said the costs would not impact
its 2017 earnings.
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Shares of CVS Health were up 1.6 percent at $73.80 in premarket
trading on Wednesday, while Express Scripts' shares were marginally
down.
(Reporting by Divya Grover; Editing by Arun Koyyur)
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