The California Public Employees’ Retirement System, or CalPERS, has replaced Optum Rx as its pharmacy benefit manager with CVS Caremark.
The new five-year contract begins in 2026 and will provide outpatient prescription drug benefits to 587,000 members enrolled in basic or Medicare HMO and PPO plans.
A key piece of the agreement is the inclusion of performance measures that require CVS to put $250 million at-risk if they do not meet goals for controlling pharmacy benefit costs and ensuring clinical quality outcomes for members.
“This new contract reflects CalPERS’ ongoing commitment to affordability and quality for our members,” Ramón Rubalcava, chair of the CalPERS Board of Administration Pension and Health Benefits Committee, said July 15. “By putting CalPERS’ values in the driver’s seat, we’re ensuring that our members and their families have access to the medications and support they need to manage their health.”
