HealthExtras, Inc. (NASDAQ:HLEX) — HealthExtras announced today that its Pharmacy Benefit Management (PBM) division, Catalyst Rx was selected by Medical Card System, Inc. (MCS) to provide PBM services to the Puerto Rico based health plan. Catalyst Rx will serve as the PBM commencing December 1, 2007, for MCS’s Commercial business and commencing January 1, 2008, for MCS’s Medicare Part D (Classicare) business. The selection of Catalyst Rx and applicable terms are subject to final contract execution.
“MCS’s selection of Catalyst Rx reflects continued success in our efforts to provide clients with both heightened performance accountability and innovative solutions to managing prescription benefits,” said David T. Blair, Chief Executive Officer of HealthExtras. “We look forward to working with MCS on a collaborative basis to deliver local market-focused management of prescription benefits and to provide MCS’s members with the highest level of service.”
“Catalyst Rx’s commitment to an extensive Center of Excellence with employees located in Puerto Rico, track record of success with numerous efficient PBM conversions and reputation for exceptional service should improve both the quality and value of pharmacy benefits for our members in Puerto Rico,” said Gregory H. Wolf, Chief Executive Officer of MCS.
Catalyst Rx has had success in serving managed care companies by aligning its clinically-focused Centers of Excellence with the operations of the health plan. This strategy has proven to be effective in improving member communications, formulary compliance and overall member satisfaction. Catalyst has already begun the initial phases of its implementation process in Puerto Rico, focused on local market hiring initiatives, data processing, information technology platforms and member communications.
HealthExtras management team will provide more details on this contract and other corporate developments in conjunction with its next regularly scheduled conference call now scheduled for November 7, 2007. During that call the Company will discuss the financial impact of the MCS contract including the timing and extent of anticipated upfront implementation expenses as well as post-implementation revenue and earnings contributions.
About HealthExtras (www.healthextras.com)
HealthExtras, Inc. is a full-service pharmacy management company. Its clients include self-insured employers, including state and local governments, third-party administrators, managed care organizations and individuals. The Company’s integrated pharmacy benefit management services marketed under the name Catalyst Rx include: claims processing, benefit design consultation, drug utilization review, formulary management, drug data analysis services, and mail service and specialty services. Additionally, the Company operates a national retail pharmacy network with over 59,000 participating pharmacies.
About Medical Card System, Inc. (www.medicalcardsystem.com)
Medical Card System Inc. (MCS) is the second largest health insurance company in Puerto Rico with over 725,000 Commercial, Medicare, and Medicaid (Reforma) members. MCS offers custom-made products and guarantees competitive rates that satisfy the health care needs of all segments of the population in Puerto Rico. MCS is a leader in health care administration and offers personalized customer service, quality and efficiency in clinical care, and flexibility in the design of plans and models of access. The company has a wide network of participating providers consisting of over 12,000 physicians, pharmacies, dentists, labs and hospitals.
This press release may contain forward-looking information. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in HealthExtras’ filings with the Securities and Exchange Commission.
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