Caremark Rx Settles Claims for $41 Million

By Diane C. Lade, South Florida Sun-Sentinel

Feb. 15–Some Florida consumers will be eligible for reimbursements through a $41 million multistate settlement reached with Caremark Rx, a major pharmacy benefits management company, Attorney General Bill McCollum said Thursday.

The state also will receive $1.7 million to put toward programs that help poor, disabled or elderly patients with their drug expenses, or that guide them toward lower-cost medications.

The states had accused the company of encouraging doctors to switch patients to different drugs, claiming it would save consumers money, while concealing that rebates obtained from process would be retained by Caremark. There also were allegations that the company restocked and resold prescription medications that had been returned to Caremark’s mail order pharmacies.

“Florida has a significant portion of its population that depends on their prescription medication to lead healthy lives and companies must not be permitted to prey on that dependency,” McCollum said in a statement. Florida, 27 states and the District of Columbia were involved in the action, beginning in 2004.

Caremark agreed to make restitution, up to $2.5 million, to patients who had extra expenses after their cholesterol medications were switched. The states still are determining how those reimbursements will be handled, said attorney general spokeswoman Sandi Copes.

The settlement also requires the company to make changes in its business practices, including reimbursing patients for any out-of-pocket health-care expenses incurred by drug switching and notifying them of any effects on their co-payments. The settlement prohibits soliciting most switches where the cost of the substituted medication exceeds that of the original.

Caremark is a part of Rhode Island-based CVS Caremark Corp., which includes the nation’s largest drugstore chain. The pharmacy benefits arm contracts with government and private businesses health plans to process prescriptions and negotiate discounts.

The company said it entered into the settlement to confirm its commitment to compliance with consumer protection laws.

The settlement still must be approved in Broward County Circuit Court.

AARP, the national senior lobbying group with almost 3 million Florida members, praised the agreement and the money it will put into state advocacy and assistance programs.

“We are very much in favor of any efforts that can help people find a better deal on prescription drugs,” said Florida spokesman Dave Bruns. The organization recently worked with the Attorney General’s Office to improve its online tool that helps seniors compare prescription prices.

Information from The Associated Press and Bloomberg News was used in this report.

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