If you have Ovations, a senior healthcare business unit of UnitedHealth Group, then there are changes coming. Ovations, the senior healthcare business unit of UnitedHealth Group, will use its internal pharmacy management resources for Medicare Part D services beginning Jan. 1, 2007. Walgreens Health Initiatives has been handling those services for Ovations since the inception of Medicare Part D.

This new change has absolutely no effect on your ability to use Walgreens pharmacies under Ovations’ Medicare Part D plans.

Ovations announced its selection of Walgreens Health Initiatives as its Medicare Part D partner in March 2005. Later that summer, UnitedHealth Group announced it was acquiring PacifiCare Health Systems, Inc., which had its own Part D program and pharmacy management services.

“We’re disappointed Ovations will handle these services internally, but we’re also proud of the significant role Walgreens Health Initiatives played in rolling out the new Medicare prescription drug benefit for Ovations, which has more enrollees than any other Medicare Part D provider,” said Greg Wasson, president of Walgreens Health Services.

Because Ovations enrollees can continue using Walgreens pharmacies, this change isn’t expected to impact Walgreens retail pharmacy business. Walgreens also will continue to be a mail service provider for UnitedHealth Group’s Medicare Part D plans.

Jacqueline Kosecoff, CEO of Ovations Pharmacy Solutions, said, “We have a strong relationship with Walgreens and believe that the millions of seniors who enrolled in our Part D plans have benefited greatly from our partnership. While our Part D management services will now be handled in-house, Walgreens will remain an integral part of our Part D pharmacy network. At the same time, we intend to explore other joint opportunities with Walgreens Health Services in the future.”

Walgreens Health Services will continue to be a preferred provider for UnitedHealth Group’s specialty pharmacy business and a provider for its home care services.

About Walgreens Health Initiatives
Walgreens Health Initiatives is a wholly owned subsidiary of Walgreen Co. (NYSE:WAG) (NASDAQ:WAG) , the nation’s largest drugstore chain with fiscal 2005 sales of $42.2 billion and 5,401 stores in 47 states and Puerto Rico. In addition to Walgreens Health Initiatives, Walgreen Co. provides fully integrated services to patients and prescription drug and medical plans through Walgreens Health Services, its managed care division which includes Walgreens Home Care, Inc., Walgreens Mail Service, Inc., and Walgreens Specialty Pharmacy.

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