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HEALTHEXTRAS INC. Rockville, Maryland; Pharmacy Benefits Manager Enjoys The Benefits Of Being Small.(THE NEW AMERICA)

Investor's Business Daily

| November 03, 2003 | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: PETER BENESH

With brokers, mutual fund managers and even regulators under fire over kickbacks, scams and conflicts of interest, it may seem odd that full disclosure can be a business model.

It is for HealthExtras Inc.

Analysts praise the pharmacy benefits manager for its candor in relations with clients. The firm shows customers the details of its volume-pricing deals with drug companies.

Bigger PBMs won't do that, says Will Seddon, analyst with CJS Securities. They say it's important to protect competitive data.

"That leads to secrecy," Seddon said. "HealthExtras will be completely transparent with the employer group. They don't have the cozy relationships with pharmaceutical companies that the larger players have. Full disclosure creates a comfort level for the customer."

HealthExtras manages drug benefits for 2.2 million members, most of them in eight states.

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