News Briefs: CalPERS Signs PBM Deal With CVS Caremark

Jul 24
Jul 24, 2025

The California Public Employees’ Retirement System (CalPERS) said on July 15 that it had agreed to a PBM contract with CVS Caremark. The five-year deal starts on Jan. 1, 2026, and includes about 587,000 CalPERS members who are enrolled in Medicare PPO and HMO plans. CalPERS said it contracted with Caremark “because of its demonstrated ability to deliver more affordable drug benefits and its commitment to performance guarantees in key areas such as managing pharmacy cost trends and ensuring clinical quality.”

BofA Securities analysts wrote in a July 16 research note that the “CalPERS contract win is a clear positive for CVS as it introduces some early momentum into 2026 and positions the company to exceed [Wall] Street expectations next year.” UnitedHealth Group’s Optum Rx previously held the CalPERS contract.
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Tim Casey

Tim has been a reporter and editor for newspapers, websites and magazines for more than 20 years, including 10 years covering health care business topics. He has a deep knowledge of the managed care industry and pharmacy benefit management. He also has experience covering medical conferences and clinical and legislative health care issues. In 2014, the Society for Advancing Business Editing and Writing selected Tim as one of 15 journalists to participate in a national symposium on the Affordable Care Act. Tim has a B.A. in Psychology from the University of Notre Dame and an M.B.A. from Georgetown University.