March 19, 2012
/PRNewswire/ -- Regence Rx, Inc. and Catalyst Health Solutions, Inc., (NASDAQ: CHSI) today announced an agreement that establishes Catalyst Rx as the exclusive provider of pharmacy benefit management (PBM) services for Regence Rx. The agreement is expected to be effective
May 1, 2012
and the initial term runs through
December 31, 2017
with a four-year optional extension. Through this agreement, Regence Rx will carve out its operational functions, and transfer related people, technology, and internal client service assets to Catalyst for them to manage and operate. Regence Rx will continue to provide clinical and contracting support to its customers.
Catalyst Rx is a full-service PBM that serves more than 18 million lives in
the United States
. This agreement will allow Regence Rx to leverage the scale and expertise of Catalyst Rx, one of the country's fastest growing PBMs, and its national provider network as the two organizations partner to deliver more efficient pharmacy benefit programs and better clinical outcomes for clients and individuals throughout the Pacific Northwest and Intermountain State Regions. Regence Rx currently provides PBM services for more than 1.2 million members of Regence Health Plans and provides related services to over 7.7 million members from other Blue Cross and Blue Shield and Medicaid plans.
"We are excited about the opportunity to partner with Regence Rx to deliver PBM services to their clients and members," said Catalyst Health Solutions President and Chief Operating Officer
. "Through this collaboration, Catalyst will work with Regence Rx to establish a pharmacy Center of Excellence in the Northwest that will help us serve an even greater number of employers, individuals and communities throughout the region."
"By joining forces, our companies will be able to fulfill our mutual goal of supporting an economically sustainable health care system," said President of Direct Health Solutions for Cambia Health Solutions, Inc.,
John W. Morgan
. "Additionally, as we leverage Catalyst's national provider network and contracting capabilities, investments in product development, and expanded sales and marketing resources, Regence Rx will be in a position to improve our efficiency, deliver enhanced service to our clients and leverage new opportunities to grow our business."
Under the terms of the agreement, Catalyst will retain Regence Rx staff and provide Regence Rx with a full complement of PBM services, including: claims adjudication, member services, network administration, rebate contracting, mail and specialty drug management, data reporting and analytics, as well as client service and sales support.