Pharmacy News Article

Business Editors/Healthcare Editors

KENNEBUNK, Maine(BUSINESS WIRE)March 2, 2009A new report from Mark Farrah Associates (MFA) found more than four out of ten Medicare recipients (41%) in the United States purchased a stand-alone prescription drug plan (PDP) from one of the 77 organizations competing in this segment as of February 1, 2009. These 17.5 million seniors have benefited from Congress? passage of the Medicare Part D prescription drug benefit since it became effective in January 2006. By stipulating that prescription drug plans be managed by the private-sector, Congress encouraged a dynamic competitive environment.

Between February 1, 2008 and February 1, 2009 PDPs enrolled an additional 92,560 net new members. The seventy-seven organizations enrolled 17,502,534 members as of February 2009, a mere 0.5% increase over last year. However, this small increase shrouds the turmoil that occurred in the top plans during the year.

Eight of the companies competing in this space cover 79% of the market, with UnitedHealth leading the group. Humana, the second largest PDP insurer, has lost more than 1.3 million members in the last two years. WellCare, Universal American and WellPoint also experienced membership declines and loss of market share as of February 2009.

According to Mark Farrah Associates? report, the primary contest continues to be between PDP plans formed by health insurers and those formed by pharmacy benefit managers (PBMs). Pharmacy and PBM-based companies, such as CVS Caremark and its acquisition of Longs Drug Store?s Rx America PDP plans, have increased total PBM-PDP market share from 8.4% in February 2008 to 12.6% in February 2009.

Visit the Healthcare Business Strategy (Healthcare BS) library on our website to read the full-text article www.markfarrah.com.

If you need to stay abreast of PDP membership changes, MFA?s Medicare Business Online ? product can help. Call Mark Farrah Associates at 207.985.8484 to request a free demonstration of the product.

About Mark Farrah Associates (MFA)

Since 1997, Mark Farrah Associates (MFA) has been recognized as a leader in analyzing health insurance business. Committed to simplifying the analysis of the health insurance industry by providing market data and analysis tools, our products include Medicare Business Online?, the Health Coverage Portal?, Health Insurer Insights?, and Health Plans USA?.

Mark Farrah Associates
Debra Donahue, 207-985-8484
www.markfarrah.com

State Keywords: Maine
Industry Keywords: Seniors; Health; Public Policy/Government; Other Health; Other Policy Issues; Public Policy; Professional Services; Consulting; Finance; Insurance; Consumer
Source: Mark Farrah Associates