CVS' Blue Cross and Blue Shield FEP specialty pharma contract expires at year end

WOONSOCKET, R.I. — CVS Health’s contract to provide specialty pharmacy services for the Blue Cross and Blue Shield Federal Employee Program (FEP) will end at the end of 2017.

“Given that the contract expires at year end, the loss of this contract does not affect the company’s 2017 financial results. The loss of this specialty pharmacy contract, which is expected to generate revenues of approximately $2.8 billion in 2017, is not expected to have a material impact on the company’s operating profit in 2018,” CVS wrote in a statement.

CVS also wrote in a statement that under separate agreements that run through 2018, it will continue to provide integrated pharmacy benefit management services, including mail service pharmacy and clinical care programs, to FEP’s more than 5.4 million federal employees, retirees and dependents.