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CVS Caremark Statement and Response to CMS Action
Date:1/18/2013

WOONSOCKET, R.I., Jan. 18, 2013 /PRNewswire/ -- CVS Caremark (NYSE: CVS) is working to resolve service issues related to its SilverScript Medicare Part D Prescription Drug Plan.  Issues with SilverScript enrollment processing resulted from an enrollment system conversion and brought about an increase in call volume and issues related to claims processing, including, in some instances, not being able to have claims adjudicated at the pharmacy.  As a consequence, the Centers for Medicare and Medicaid Services (CMS) has placed SilverScript on intermediate sanctions, effective as of 11:59PM EST January 15, 2013. 

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Enrollment of any Medicare beneficiaries in the SilverScript plan and all marketing activities have been suspended.  The CMS action does not affect current SilverScript members and these beneficiaries will continue to have access to covered services.  Existing employer group health plans are not affected by this action; CVS Caremark health plan clients are not affected by this action. The company estimates that the sanctions should not have a material impact on its 2013 earnings.

"We take these issues very seriously and are committed to working swiftly with CMS officials to address their areas of concern," said Jon Roberts , President of the pharmacy benefit management business of CVS Caremark. "We also want to commit to members who experienced enrollment issues that we will resolve these expeditiously."

About CVS Caremark
CVS Caremark is dedicated to helping people on their path to better health as the largest integrated pharmacy company in the United States. Through the company's more than 7,4
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