CVS Caremark on Monday agreed to pay more than $5 million to settle allegations that it paid Oklahoma pharmacies less than what medications actually cost. The funds will repay pharmacies for more than 68,000 prescriptions filled between January 2024 and August 2025.
“When your local pharmacy is paid pennies on the dollar or even loses money filling your prescription, it can't keep its doors open," state Attorney General Gentner Drummond said. "This settlement puts millions of dollars back into Oklahoma pharmacies so they can continue serving their communities. We're protecting your access to the prescriptions you need and the pharmacists you trust, especially in small towns where the local pharmacy is often the only option for health care."
The lawsuit, filed in January, had sought the censure, suspension or revocation of CVS Caremark’s licenses and an assessment of fines. The announced settlement also includes fines and covers the state's investigation costs. Three-quarters of the fines will go directly to affected pharmacies, while the remainder will support the attorney general's continued oversight pharmacy benefit managers.
CVS Caremark also has agreed to several reforms, including reviewing pharmacy payment disputes against national cost benchmarks; allowing pharmacies to use documentation of actual costs when challenging payments; responding to disputes within 10 calendar days as required by state law; and working with the attorney general's office during a 90-day period to resolve additional complaints.
Deputy Attorney General Michael Leake, who oversees the PBM Compliance and Enforcement Unit, praised the Oklahoma pharmacies that came forward.
"This outcome would not have been possible without independent and community pharmacies willing to document their losses and stand up for their patients," he said. "Their complaints gave us the evidence we needed to secure restitution, penalties and meaningful reforms that will protect Oklahoma patients and pharmacies."
CVS Caremark denied any wrongdoing and said it agreed to the settlement to avoid the costs and uncertainties of continued litigation.
“CVS Caremark cooperated fully to reach this settlement,” company spokesperson Phillip Blando said in a statement. “We are pleased to continue serving Oklahoma clients and their members to make prescription drugs more affordable.”
At the time that he filed the lawsuit, Drummond told a state Senate committee that he had received more than 3,100 complaints about PBMs operating in the state.
“Oklahoma is seeing a rise of independent pharmacy closures due to PBM practices, leaving vulnerable populations throughout Oklahoma without access to central health care,” he said. “And this creates both job losses and other negative economic impacts, especially in the rural part of our state.”
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