News Headlines Article

Health Net to sell Medicare prescription-drug plan
Modern Healthcare

Health Net, a Woodland Hills, Calif.-based insurer, has agreed to sell its stand-alone Medicare prescription-drug plan to CVS Caremark for $160 million in cash, after five years of cooperation between the two companies, according to a news release. Health Net expects to earn $140 million from the sale after costs, which will be spent “in ways that benefit Health Net stockholders,” the release said. The sale will require regulatory approval, including from the CMS, and is expected to close in the second quarter.