CVS Caremark Statement on State Settlement.WOONSOCKET, R.I. -- CVS Caremark Corporation CVS Caremark Corporation, NYSE: CVS is an integrated pharmacy services provider, combining one of the U.S.'s leading pharmaceutical services companies with the country’s largest pharmacy chain. (NYSE NYSE See: New York Stock Exchange : CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. ) announced today that it has resolved a multi-state consumer protection investigation of certain alleged PBM PBM - play by mail. See play by electronic mail. business practices of its legacy AdvancePCS and legacy Caremark subsidiaries. As previously disclosed, this investigation began in 2004 and is similar to multi-state consumer protection investigations of other major PBM companies. The Company's AdvancePCS (now known as CaremarkPCS) and Caremark subsidiaries have entered into a settlement agreement and consent order with 28 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . In entering the settlement, they have expressly denied any and all allegations, and there has been no finding of wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do or inappropriate business
conduct on their part.
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 mutually agreed consent order requires AdvancePCS and Caremark to maintain certain PBM business practices and will not result in significant changes to current business practices. In that regard, the Company is committed to driving value for its clients and plan participants by effectively managing pharmaceutical costs and improving health care outcomes The Company has agreed to enter into the settlement to confirm its continued commitment to compliance with state consumer protection laws consumer protection laws n. almost all states and the federal government have enacted laws and set up agencies to protect the consumer (the retail purchasers of goods and services) from inferior, adulterated, hazardous and deceptively advertised products, and in serving the pharmacy benefit needs of its PBM clients and their participants and to avoid the uncertainty and expense of the investigation. 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. About CVS Caremark CVS Caremark is the largest provider of prescriptions and related healthcare services in the nation. The Company fills or manages more than 1 billion prescriptions annually. Through its unmatched breadth of service offerings, CVS Caremark is transforming the delivery of health care services in the U.S. The Company is uniquely positioned to effectively manage costs and improve healthcare outcomes through its approximately 6,200 CVS/pharmacy stores; its pharmacy benefit management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. , mail order and specialty pharmacy division, Caremark Pharmacy Services; its retail-based health clinic subsidiary, MinuteClinic; and its online pharmacy, CVS.com. General information about CVS Caremark is available through the Investor Relations portion of the Company's website, at http://investor.cvs.com, as well as through the pressroom portion of the Company's website, at www.cvs.com/pressroom. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion