CalPERS has dropped its ongoing talks with Medco Health Solutions for a new pharmacy benefits contract, The Wall Street Journal reports. Medco, which has offered CalPERS with for pharmacy benefit services since 2006, was the finalist for a new three-year contract beginning next year. The other finalists are CVS Caremark, MedImpact and UnitedHealth Group’s Prescription Solutions.
The public pension fund has been in talks with the California attorney general’s office and the Securities and Exchange Commission regarding investigations into possible improprieties surrounding Medco’s pursuit of the CalPERS business it won in 2006. The New Jersey-based company originally received a $26 million three-year contract from CalPERS in 2006, which was extended twice and currently totals $48 million.
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