Walgreens, Walmart partner with Coventry to offer First Health Value Plus in the U.S.

Coventry Health Care, Inc. (NYSE: CVH) announced today that it has joined in partnership for 2012 with the nation's largest and best known names in retail and pharmacy—Walgreens (NYSE, NASDAQ: WAG), Walmart, and Target—to offer a novel Medicare prescription drug plan known as First Health Value Plus (PDP). As Coventry's newest Medicare Prescription Drug Plan, First Health Value Plus is the lowest premium, zero-dollar deductible Part D plan in the United States.

First Health Value Plus is built on one of the nation's broadest preferred pharmacy networks and offers lower member co-payments for prescriptions filled at any one of the almost 14,000 combined Walgreens, Walmart, and Target pharmacy locations. The preferred network pharmacy benefit design allows members to receive free Tier 1 formulary prescriptions (most generics and select branded drugs) when filled at any Walgreens, Walmart, or Target pharmacy before reaching the coverage gap or "donut hole." As a result, First Health Value Plus will potentially provide hundreds of dollars in annual savings to Medicare beneficiaries and be a competitive alternative versus the lowest premium stand-alone Part D plan that includes a deductible.

"In these challenging economic times, we believe our new Part D plan brings great value to beneficiaries and the Medicare program by establishing broad access to prescriptions through the most recognized names in the pharmacy and retail business, low monthly premiums, and no deductible, all of which are important to seniors. For the first time, we've also included value-added well-being items that are available only through our preferred partners," said Nancy Cocozza, senior vice president of Medicare at Coventry Health Care.

First Health Value Plus Plan (PDP): Benefits and Details

• Average premium of $25.60 per month (range: $21.70 - $30.10)
• $0 annual deductible
• One of the largest preferred pharmacy networks in the Medicare program with nearly 14,000 locations
  • Walgreens - 7,760 retail pharmacies
  • Walmart - over 4,400 retail facilities including Walmart stores and Sam's Clubs
  • Target - more than 1,610 pharmacies
• $0 co-pay on Tier 1 formulary prescriptions (most generics and select branded drugs) at preferred pharmacies during the Part D initial coverage period; $7 co-pay on Tier 1 formulary prescriptions at other contracted pharmacies
• Lower co-pays on Tier 2 and Tier 3 formulary prescriptions when filled at preferred pharmacies
• 90-day supply of prescriptions available through retail pharmacies
• Access at Walmart and Target to preferred value generics (i.e., $4 generics), which will help members who enter the coverage gap
• Vouchers mailed to enrolled First Health Value Plus members for health and well-being products (e.g., multivitamins, calcium tablets) that can be redeemed at any preferred pharmacy.

"As the nation's largest drugstore chain, Walgreens is excited about joining with Coventry as a key preferred pharmacy partner through our thousands of retail locations to participate in a new kind of prescription drug plan for America's seniors. Today's Medicare beneficiaries are looking for a community pharmacy in their neighborhood that offers value in combination with other well-being products. That makes First Health Value Plus with access to Walgreens pharmacies across the country an attractive option for them," said Kermit Crawford, Walgreens president of pharmacy, health and wellness.

"Coventry is strongly committed to the Medicare program and the beneficiaries we serve. Our First Health Value Plus plan demonstrates an innovative new approach to Part D by combining affordable coverage, wide access to preferred pharmacies in urban, suburban, and rural locations, and the extra well-being items that seniors want. As a result, we believe that Value Plus will be a very competitive and compelling Part D option for many beneficiaries," said Coventry's Nancy Cocozza.