AG Drummond reaches $5 million settlement with CVS Caremark

Oklahoma Attorney General Gentner Drummond announced a $5 million settlement with CVS Caremark, one of the largest Pharmacy Benefit Managers in the United States, to resolve allegations of unlawful compensation practices. The lawsuit, filed in January, claimed that CVS Caremark paid Oklahoma pharmacies less than the cost of the medications they dispensed. The settlement will repay pharmacies for 68,099 prescriptions filled between January 2024 and August 2025. CVS Caremark did not admit wrongdoing but agreed to the settlement to avoid further litigation.

Attorney General Drummond emphasized the importance of supporting local pharmacies, stating, “When your local pharmacy is paid pennies on the dollar…it can't keep its doors open.” The settlement includes fines, covers investigation costs, and mandates reforms such as reviewing payment disputes and responding to complaints within 10 days. Affected pharmacies will receive 75% of the fines, with the remaining 25% allocated to the AG’s oversight of PBMs.

This case is part of a broader trend, with other states like Louisiana, Illinois, and Pennsylvania also filing suits against CVS Caremark. A recent FTC report revealed that the largest PBMs have significantly inflated the prices of numerous drugs. The Attorney General’s Office will contact eligible pharmacies with instructions on receiving settlement payments and encourages pharmacies to file complaints regarding below-cost payments.

(Source：Yahoo! News)