UnitedHealth’s OptumRx Awarded CalPERS $4.9B Prescription Drug Contract
The California Public Employees' Retirement System board voted unanimously to give the five-year contract to the pharmacy-benefit division of UnitedHealth. OptumRx was the lowest bidder for the contract, which starts Jan. 1. The company’s bid totaled $4.88 billion for the five-year cost of prescription drugs, including rebates and the company’s administrative fees.
The San Francisco Business Times:
CalPERS Awards $4.9 Billion PBM Contract, As It Scrambles To Control Rx Drug Costs
The California Public Employees Retirement System has awarded an estimated $4.9 billion, five-year pharmacy benefits management contract to OptumRx, a UnitedHealth Group (NYSE: UNH) subsidiary. The contract takes effect Jan. 1, and ends Dec. 31, 2021, officials said. OptumRx will administer prescription drug benefits for 486,000 CalPERS members, retirees, and dependents, or just over one in three of the 1.4 million total. (Rauber, 5/19)
CalPERS Taps UnitedHealth To Run Its Prescription Drug Business
The California Public Employees’ Retirement System has picked a unit of UnitedHealth Group to run its pharmacy business, hoping the nation’s largest health insurer can help contain the soaring cost of prescription drugs. Now CalPERS will turn its attention to setting health insurance rates for 2017. The CalPERS board voted unanimously Wednesday to follow its staff’s recommendation to award a five-year contract to OptumRx, the pharmacy-benefit division of UnitedHealth. Optum beat out two other industry giants, Express Scripts and CVS Health, which is the current pharmacy-benefit manager for CalPERS. (Terhune, 5/18)