Medco Named New Pharmacy Benefit Manager

February 28, 2005

RALEIGH – Effective April 1, 2005, Medco will become the pharmacy benefit manager (PBM) for the NC Teachers’ and State Employees’ Comprehensive Major Medical Plan (State Health Plan). Medco replaces Caremark/AdvancePCS.

We are pleased to have selected Medco for this role for the following reasons:

Medco offers patients 24-hour customer service. With the exception of Thanksgiving Day and Christmas day, customer service representatives and pharmacists are available to speak with the Plan’s members seven days a week.
Plan members can expect enhanced communications from Medco on their pharmacy benefits. Medco has ranked consistently high in independent consumer surveys for providing pharmaceutical care at the highest level of service.
Many Plan members will see an expanded preferred drug list (PDL).
Finally, by using Medco as our PBM, we anticipate reducing overall pharmacy costs by $115 million over the life of the contract with Medco.

In the next couple of weeks, members will be receiving in separate mailings a Welcome Packet from Medco and a temporary member ID card from the State Health Plan. The new card will serve as the medical and prescription drug card. In order to comply with federal and state privacy regulations the State Health Plan will mail a second, permanent ID card that does not reflect Social Security Numbers in early summer. Within the next week you will be forwarded via e-mail a copy of the materials in the Welcome Packet. The packet will contain a welcome letter, prescription benefit booklet, mail order form and the Plan’s preferred drug list. There will be no change in the co-payment structure of pharmacy benefits.

We anticipate a smooth transition to our new pharmacy benefit manager. Medco’s customer service line 1-800-336-5933 will be open on March 15, 2005 for any calls members may have prior to April 1, 2005.