Union Group Pushes Kan. to Dump Drug Plan Manager

[Omaha Steve]

http://abcnews.go.com/Business/wireStory?id=10152534

Union criticizes company managing drug plan for Kansas state workers; lawmakers plan hearings
By JOHN HANNA Associated Press Writer
TOPEKA, Kan. March 19, 2010 (AP)

A national union group is pushing Kansas to dump the company that manages the prescription plan for state employees, saying it has failed to offer the lowest possible prices on many drugs. A legislative committee chairman said Friday that the panel may hold hearings on those claims.

Washington-based Change to Win, which represents 5.5 million workers in five unions including the Teamsters, contends CVS Caremark Corp. has not offered Kansas government employees the best deal in many cases. Change to Win also said there have been similar questions about CVS plans in other states, including Illinois and Maryland.

CVS, based in Woonsocket, R.I., said the union group is waging a campaign against the company with "misleading or outright false information."

Kansas spent $61 million last year on CVS-provided prescriptions for its 24,700 employees and paid the company $1.6 million in administrative fees. The state's three-year contract with CVS will end Dec. 31, and Kansas has sought proposals for a new contract from potential managers.

Change to Win outlined its claims against CVS in a letter earlier this month to Secretary of Administration Duane Goossen. He is chairman of a five-member commission that plans to decide which company should receive the new contract. Union representatives also brought Change to Win's criticisms of CVS to the House Government Efficiency and Fiscal Oversight Committee this week.

FULL story at link.