By Emma Murphy, Oklahoma Voice
OKLAHOMA CITY — CVS Caremark will pay a $32.1 million settlement for allegedly keeping money that “belonged” to the state employee health plan, HealthChoice, the Attorney General’s Office said Tuesday.
CVS Caremark agreed to the settlement to avoid litigation but has denied any wrongdoing, the Attorney General’s Office said. CVS Caremark is a pharmacy benefit manager that works to negotiate prices between insurance companies, drug manufacturers and pharmacies.
“When drug companies give discounts and rebates for medications, CVS Caremark was supposed to pass that money on to HealthChoice,” according to a news release from Attorney General Gentner Drummond’s office. “Instead, the state contends that CVS kept millions of dollars that should have gone to help lower healthcare costs for state employees from January 2020 through December 2024.”
CVS Caremark is set to pay Oklahoma $32.1 million under the terms of the settlement. About $27 million of this goes to HealthChoice once lawyer fees to pay for outside counsel are deducted, according to a news release.
Under the settlement terms, CVS Caremark will also report any collected rebates every quarter to ensure “greater transparency and accountability,” according to the release.
“These funds should be used to help keep premiums lower for HealthChoice members,” Drummond said in a statement. “This recovery reflects our commitment to maximizing benefits for the state employees who serve all Oklahomans and protecting taxpayer dollars that fund these healthcare benefits.”
Drummond said his office is continuing to pursue a separate lawsuit against CVS Caremark for allegedly under reimbursing Oklahoma pharmacies for acquiring prescription drugs. In January he estimated could recover around $2 million in fees and restitution.
