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MemberHealth provides termination notice to Medco Health Solutions

Universal American subsidiary, MemberHealth, has issued notice of termination effective 31 December 2011 to Medco Health Solutions regarding its Medicare Part D prescription benefits management agreement.

Pursuant to the agreement, Medco provides pharmacy benefit management services to beneficiaries of various Medicare plans that are under contract with the Centers for Medicare and Medicaid Services.

The notice of termination followed as a result of the announcement of the acquisition of Universal American’s Medicare Part D business by CVS-Caremark Corporation.

As per the agreement, CVS Caremark will acquire all of the outstanding stock of Universal American and concurrently distribute to Universal American shareholders 100% of the shares of a newly formed public company (NewCo), which will own all other operations of Universal American, including its Medicare Advantage and Traditional Insurance businesses.