Medco Health Solutions Inc., the drug-benefit giant that's been caught up in the CalPERS bribery scandal, is being sold.
The New Jersey company agreed to a $29.1 billion sale to rival Express Scripts Inc.
CalPERS severed ties with Medco in March following disclosures that Medco paid more than $4 million to Alfred Villalobos, the Lake Tahoe businessman who's been accused of bribing pension fund officials. Medco still runs a $500 million-a-year drug-benefit contract for CalPERS, which runs out in December, but was taken out of the running for a contract renewal.
Medco acknowledged paying Villalobos, saying it was for his help in clearing up an audit of Medco's work on an earlier contract for CalPERS. An investigative report commissioned by CalPERS said Villalobos was hired to help Medco secure a new contract with the pension fund.
Either way, Medco found itself in hot water. It said it was being investigated by state and federal officials.
After losing CalPERS' business, Medco began losing even bigger customers.
Thursday, July 21, 2011
Drug benefit company connected to CalPERS bribery scandal sold - Sacramento Bee
via sacbee.com
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