CVS Caremark has reached a settlement agreement with the Federal Trade Commission to resolve litigation and investigations related to its pharmacy benefits management and affiliated pharmacy businesses. The settlement addresses a September 2024 lawsuit alleging anticompetitive rebating practices that inflated insulin list prices and harmed patients. Under the agreement, CVS Caremark will implement reforms including aligning member cost sharing with net drug costs, moving away from rebate guarantees and spread pricing, expanding transparency on drug pricing and broker compensation, capping insulin costs at $25 per month, promoting point-of-sale rebate passthrough, delinking manufacturer compensation from list prices, and transitioning to acquisition-based reimbursement for independent pharmacies. The company will also count eligible TrumpRx discount program purchases toward deductibles and out-of-pocket maximums, subject to regulatory conditions. CVS Caremark will begin implementing the provisions according to timelines set with the FTC.
CVS Health CorpSettlement resolves FTC lawsuit with reforms that reduce regulatory uncertainty and remove a major legal overhang.