Medco, Caremark Itching to Play Medicare Card

Health care companies are lining up to sample a new growth hormone.

This spring, dozens of health care players will participate in a trial designed to test a new Medicare drug benefit that, if successful, could generate substantial new business for the industry. So far, 28 companies -- including the three dominant pharmacy benefit managers, Medco Health (MHS Quote), Caremark (CMX Quote) and Express Scripts (ESRX Quote) -- have been authorized to begin offering discount drug cards this June.

The cards themselves may do little to boost near-term industry profits, but they will allow participating companies to forge important relationships with Medicare customers before the full-blown drug benefit takes effect in 2006. ...