North Carolina State Health Plan Signs Major Deal with CVS Caremark

The North Carolina Department of State Treasurer has finalized a significant agreement with CVS Caremark, aiming to reduce prescription drug costs for over 750,000 beneficiaries. This deal is designed to enhance affordability for state employees and their dependents while ensuring more transparent pharmacy pricing and payments.

Under the terms of this agreement, the North Carolina State Health Plan gains improved negotiating power, potentially allowing for the reinstatement of coverage for weight-loss medications. Brad Briner, the North Carolina Department of State Treasurer, highlighted the importance of this partnership, stating, “The commitments we were able to secure from Caremark represent a monumental win for the members of the State Health Plan.”

Enhanced Oversight and Cost Management

This agreement follows a challenging negotiation process that ultimately provided the State Health Plan with greater oversight of the allocation of state tax dollars. The new model emphasizes direct negotiations with drug manufacturers, which may lead to the restoration of coverage for specific medications, including GLP-1s. The Plan will maintain control over its formulary, promoting both cost-effectiveness and improved health outcomes for its members.

Ed DeVaney, President of CVS Caremark, expressed appreciation for the collaboration, stating, “We are grateful to the state for their partnership and are honored to continue working on behalf of North Carolina’s teachers and public employees to lower their prescription drug costs.” This commitment aligns with the State Health Plan’s objective of connecting members to affordable medication and services without disruptions in the near future.

Collaborative Efforts Recognized

The announcement also acknowledged the collaborative efforts of key individuals who played a crucial role in finalizing this agreement. Former treasurer Dale Folwell, Attorney General Jeff Jackson, and Auditor Dave Boliek were recognized for their indispensable cooperation throughout the negotiation process.

Looking ahead, Thomas Friedman, Executive Administrator of the State Health Plan, assured members that this agreement will not lead to increased premiums in the coming year. This assurance is particularly reassuring, as the Plan had anticipated the settlement back in August 2023 when setting the premiums.

In summary, this agreement between the North Carolina Department of State Treasurer and CVS Caremark marks a pivotal step toward improving prescription drug affordability and transparency for state employees and their families. The collaborative efforts of all parties involved have laid the groundwork for enhanced health care outcomes, fostering a more sustainable model for the future.