CVS Caremark will pay $32.1 million to the state of Oklahoma after the pharmacy benefit manager allegedly held back savings from the state’s employee health plan, according to a Sept. 9 news release from Oklahoma Attorney General Gentner Drummond.
The state argued Caremark did not pass down millions of dollars in discounts and rebates for medications from 2020 through 2024, affecting members of Oklahoma’s state employee health plan, HealthChoice. CVS maintained it followed its contract with the state.
“When a company keeps money that belongs to Oklahoma taxpayers, we’re going to fight to get it back,” Mr. Drummond said.
After attorney fees, roughly $27 million of the settlement will go to HealthChoice to reduce premiums, he said.
As part of the settlement, CVS Caremark must also pay any additional rebate amounts from 2020 through 2024 to the state within 90 days, pass along future rebate payments within 90 days of collection, work under an expanded definition of “rebates,” and report rebates quarterly.
Caremark was also recently ordered to pay $290 million in a false claims suit, and CVS Pharmacy settled with Massachusetts for $12 million in a Medicaid overbilling case.
