Florida Attorney General James Uthmeier launched an investigation into CVS Health with concerns that the company is using its market power to disadvantage independent pharmacies and limit consumer choice. The investigation focuses on allegations that Caremark steers patients to owned and affiliated pharmacies, reimburses affiliated stores at higher rates than independent pharmacies, imposes audits that result in claw backs, and uses restrictive contract language that squeezes pharmacies. Many of these practices were prohibited by sweeping legislation in 2023 that many have said hasn't been adequately enforced.
Media coverage of the investigation mentions that Caremark responded to the announcement with a late-night audit notification of at least one independent pharmacy. The investigation starts with a Civil Investigative Demand (CID), which allows the state to compel the production of documents and sworn testimony before filing any lawsuit or formal enforcement action. The CID seeks information related to reimbursement rates, pharmacy contracts, patient steering practices, audits, rebates, and the treatment of CVS-affiliated pharmacies compared with independent competitors. CVS Health must respond to the CID by July 28.
