NEW YORK (AP) — Health Net Inc. said Monday it will sell its Medicare Part D stand-alone prescription drug business to CVS Caremark for $160 million.

Health Net said the business has about 400,000 members in 49 states and Washington DC, and it brings in approximately $490 million in annual revenue. The deal is scheduled to close during the second quarter, pending approval from antitrust regulators.

The Woodland Hills, Calif., managed care company will continue to provide prescription drug plans as part of its Medicare Advantage offerings.

CVS Caremark Corp., based in Woonsocket, R.I., is one of the largest pharmacy benefits managers in the U.S. It is expanding its Medicare Part D business because as the population ages, more Americans will get their prescription drug coverage from Medicare. In April 2011, CVS bought Universal American Corp.’s Medicare Part D business for $1.25 billion, more than doubling its Medicare Part D business.

CVS also runs more than 7,300 drugstores.

Health Net shares fell 23 cents to $32.55 in midday trading, while CVS shares rose 5 cents to $41.51.