Anthem Inc. (ANTM) - Get Anthem, Inc. Report announced Wednesday, Oct. 18, that it will sign onto a deal with CVS Health Corp. (CVS) - Get CVS Health Corporation Report to contract the drugstore chain's services for a new pharmacy benefits manager called IngenioRx.
CVS will take over services for Anthem's benefits manager program in 2020, when Anthem's current contract with Express Scripts Holding Co. (ESRX) runs out. CVS and Anthem agreed to a five-year deal.
According to a statement released Wednesday, CVS Caremark will manage some services for the new IngenioRx program, including claims processing and prescription fulfillment. CVS Health's other assets will "allow the company to apply its expertise in patient messaging and engagement at the point-of-sale to support IngenioRx, broadening the scope of clinical services offered at the pharmacy counter to drive better outcomes."
The new IngenioRx program will begin Jan. 1, 2020, and take over Anthem's previous pharmacy benefits manager program. Until that transition, Anthem members will continue with the same benefits they have today.
CVS said it expects to incur some implementation costs related to the transaction, but those costs aren't likely to affect 2017 financial results.
In premarket trading Wednesday, CVS stock was higher 1.34% to $73.60, while Express Scripts shares were lower by 2.2% to $55.95. Anthem shares don't trade premarket, but finished trading Tuesday up 1.9% to $187.26.
More of What's Trending on TheStreet: