Share Copy link Email LinkedIn X/Twitter Facebook Print CVS Health’s Caremark has reached a settlement with the Federal Trade Commission requiring notable changes to the pharmacy benefit manager’s business practices, including that Caremark prefer the lowest-cost drugs on its standard formularies and pass through savings negotiated with drugmakers to clients. The settlement announced by the FTC on Tuesday puts to bed regulators’ allegations that Caremark preferred more expensive versions of insulin in order to increase its rebates, driving up prices for the lifesaving diabetes drug. The FTC lodged the suit against Caremark, along with fellow PBM giants Express Scripts and Optum Rx, in 2024. Express Scripts settled with the FTC in February while Optum Rx is still finalizing an agreement with the antitrust agency. The terms of CVS’ settlement are very similar to those s…

It requires Caremark to include any purchases a patient makes through TrumpRx, President Donald Trump’s online drug marketplace, towards the deductible in certain health plans, once regulatory changes make that possible. The settlement also includes a number of transparency provisions. However, the CVS deal includes a new wrinkle meant to assuage concerns that the healthcare behemoth leverages its market power to prevent independent pharmacies from working with rival pharmacy hubs, third-party companies that provide a range of digital pharmacy services. The settlement prevents CVS from foreclosing hub service providers, and will create a monitor to ensure its compliance, according to the FTC. In a statement, FTC Chairman Andrew Ferguson said the deal will “billions in real savings to consumers feeling the pinch from excessive prescription drug prices.” Ferguson was th…