On December 11, 2009, CVS Caremark Corp was the winning bidder for a contract worth almost $1 billion. This contract would provide pharmacy benefits to retired teachers strictly in Texas. The Teacher Retirement System of Texas (the people that are part of the contract) will begin to negotiate a two- year deal with CVS to start helping retired teachers. This contract is told to begin in September of 2010. It is said that CVS has dropped 13 percent in all stocks for the New York Stock Exchange. They have also lost around $4.8 billion in a 2010 contract because of the prices for the drugs. Luckily for CVS, winning the billion dollar contract has now rejuvenated the pharmacy business image, and has also shown that the pharmacy business is still alive and well. The contract is broken down into a two year commitment. In 2011, the contract is told to give $480 million, while $518 million is estimated worth for 2012.
I believe that this contract is one that will do the best for all retired teachers in Texas. Not only is this a good plan for anyone, but especially for those teachers that cannot afford health care. If one cant afford health care, how can they get the necessary items they need to stay healthy? CVS did lose a chunk of money in shares, but hopefully this plan will strengthen there stock market. Although this plan does not start until 2011, it is something that all should wait for, and all retired teachers should be able to benefit quite a bit from this plan.
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