UAM shares skyrocketing on plan to sell Medicare drug unit to CVS

Shares of Universal American Corp. (NYSE:UAM) are surging on news that the company agreed to sell its medicare Part D business to CVS Caremark Corporation (NYSE: CVS) for about $1.25-billion.

As of 9:45 a.m. (EDT), UAM shares were up 36.2 percent.

A report on Reuters said the transaction will more than double the size of CVS Caremark's business that provides prescription drug coverage under the Medicare Part D program. Medicare is the U.S. government's healthcare program for the elderly.