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CVS Caremark Resolves Multi-state Consumer Protection Investigation Of Certain Alleged PBM Business Practices - Quick Facts

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

CVS Caremark Corp. (CVS) said that it has resolved a multi-state consumer protection investigation of certain alleged PBM business practices of its legacy AdvancePCS and legacy Caremark subsidiaries.

The company has agreed to pay $12 million in settlement on behalf of legacy AdvancePCS, $10 million in settlement on behalf of legacy Caremark, $16.5 million in state investigative costs and up to $2.5 million as reimbursement for certain medical tests.

The amounts to be paid were previously accrued for by legacy Caremark in prior fiscal periods, so the settlement will not affect the 2008 financial results of the company.

The company has also agreed to enter into the settlement to confirm its continued commitment to compliance with state consumer protection laws in serving the pharmacy benefit needs of its PBM clients and their participants and to avoid the uncertainty and expense of the investigation.

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