Health Net, Inc. announced that it is in agreement to sell its Medicare stand-alone prescription drug plan to CVS Caremark for approximately $160 million.
The sale is subject to closing conditions and applicable regulatory approvals, including approval from CMS, but is expected to close in the second quarter of 2012.
Health Net has approximately 400,000 Medicare PDP member in 49 states and the District of Columbia. Their annualized revenue for the Medicare PDP business is approximately $490 million.
Health Net will still continue to provide prescription drug plans as part of it Medicare Advantage plan offerings.
Last year, CVS Caremark purchased Universal American’s 1.9 million PDP members for $1.25 billion, more than doubling its membership and making it the nation’s second largest PDP carrier.