Back to top

Analyst Blog

The festive season is bringing good tidings for CVS Caremark Corporation (CVS - Analyst Report), with the Centers for Medicare and Medicaid Services (CMS) lifting sanctions imposed against the former’s SilverScript drug plan aimed at senior citizens. The company can now resume enrolling members for SilverScript effective Jan 1, 2014.

On Jan 15, 2013, CMS had imposed an immediate sanction on SilverScript Part D Prescription Drug Plan, forbidding CVS to market or sell any new drug plans. However, the enrollment suspension applied only to the company's Medicare drug plans and did not include other CVS Caremark plans or coverage.

The ban was imposed following the federal healthcare agency’s receipt of complaints regarding enrollment, claims processing and customer call-center operations.

The widespread data system failure resulted in thousands of senior citizens being unable to get their medications on time. The ban was a serious threat for the company as it meant that no new enrollments could take place, though existing SilverScript members could continue with their prescriptions getting filled at CVS retail drug stores.

In the suspension letter, CMS has asked CVS Caremark to undertake remedial actions to address the issues without delay.  Subsequently, CVS Caremark put its best foot forward, making honest attempts to look into the enrollment processing issues to provide customers with improved service and support.

Last week, owing to CVS Caremark’s correctional efforts, the company received the permission to start marketing and enrollment in the SilverScript Medicare Part D Prescription Drug Plan (PDP).

CVS Caremark currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include McKesson Corporation (MCK - Analyst Report) carrying a Zacks Rank #1(Strong Buy), Align Technology Inc. (ALGN - Analyst Report) and Herbalife Ltd. (HLF - Snapshot Report) each carrying a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%