The festive season is bringing good tidings for
CVS Caremark Corporation
), 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.
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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
) carrying a Zacks Rank #1(Strong Buy),
Align Technology Inc.
) each carrying a Zacks Rank #2 (Buy).