Catalyst Rx Expands Generic Advantage Plan

Catalyst Rx, the pharmacy benefit management (PBM) subsidiary of Catalyst Health Solutions, Inc. (NASDAQ:CHSI), announced the expansion of its Generic Advantage Plan.

The expanded Generic Advantage Plan was developed after more than a year of consultation with pharmacy, behavioral psychology and technology experts with the goal on lowering costs while improving care. The program deploys a series of customizable features, including Catalyst’s Formulary Advantage, financial incentives, targeted member and prescriber outreach, the latest in smartphone technology and the Company’s award winning Price & Save web-based drug pricing look-up tool.

As healthcare costs continue to increase, there is tremendous opportunity for plans and members to reduce their healthcare expenses by taking advantage of equally effective lower cost medications, shopping for lowest priced pharmacies, and improving medication adherence, which in turn improves overall health and reduces medical expenses.

“The Generic Advantage Plan is a natural continuation of our initiatives to drive the most care- and cost- effective solutions,” stated David T. Blair, Chief Executive Officer of Catalyst. “It is our commitment to clinical innovation that has been embraced by our growing client base and is a key reason that Catalyst has grown at a rate greater than our competitors.”

Results show that the combined features of the Generic Advantage Plan improve generic utilization and medication adherence substantially. The expanded plan was introduced in late 2009 on a limited basis and clients that implemented the pilot program experienced significant savings in 2010. On average, generic utilization increased ten percentage points and plan costs decreased by 16% across targeted drug categories within a year of initiating the plan.

Given the significant number of brand-name drugs expected to lose patent protection in the coming years, industry experts project that generic drugs could be effectively utilized over 80% of the time. On average, generic drugs cost as little as one-third the cost of their brand-name counterparts. Health plans can save as much as 5% to 10% of their overall pharmacy costs when reaching appropriate levels of generic utilization. Blair added, “The Generic Advantage Plan truly aligns incentives for our members, clients and pharmacies.”

About Catalyst Health Solutions, Inc. (www.chsi.com)

Catalyst Health Solutions, Inc. is built on strong, innovative principles in the management of prescription drug benefits and provides an unbiased, client-centered philosophy resulting in industry-leading client retention rates. The Company's subsidiaries include Catalyst Rx, a full-service pharmacy benefit manager serving more than 7 million lives in the United States and Puerto Rico; HospiScript Services, LLC, one of the largest providers of pharmacy benefit management services to the hospice industry; and Immediate Pharmaceutical Services, Inc., a fully integrated prescription mail service facility in Avon Lake, Ohio. The Company's clients include self-insured employers, including state and local governments, managed care organizations, unions, hospices, third-party administrators and individuals.

This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that might materially affect our results, particularly those risks referred to in our Annual Report on Form 10-K for the year ended December 31, 2009, and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, under “Item 1A. Risk Factors.” Readers are urged to carefully review and consider the various disclosures made in our Annual Report on Form 10-K, our Forms 10-Q, and our other filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and uncertainties that may affect our business. Catalyst Health Solutions, Inc. does not undertake any obligation to update forward-looking statements, whether as a result of new information, future events, or other developments.

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