In a decisive move by Attorney General Gentner Drummond, CVS Caremark has been hit with over $5 million in settlements, a maneuver aimed at resolving allegations that the giant Pharmacy Benefit Manager (PBM) underpaid Oklahoma pharmacies for medications. As detailed by the Oklahoma Attorney General's Office official announcement, the company is said to have paid pharmacies less than their costs for dispensed prescription drugs.
The settlement mandates that CVS Caremark pays precisely $5,081,520.69 back to the Oklahoma Attorney General's Office. Over 68,000 prescriptions filled from January 2024 to August 2025 will be reimbursed, where previously, pharmacies had received payment falling short of their costs. "When your local pharmacy is paid pennies on the dollar, or even loses money filling your prescription, it can't keep its doors open," Drummond expressed, highlighting the strain on pharmacies, particularly in smaller towns where healthcare options may be limited to the local pharmacy alone.
Oklahoman pharmacies, which reported their losses to the authorities, received acclaim for their actions. Deputy Attorney General Michael Leake, overseeing the PBM Compliance and Enforcement Unit, acknowledged their pivotal role. "This outcome would not have been possible without independent and community pharmacies willing to document their losses and stand up for their patients," Leake said, as stated by the Oklahoma Attorney General's Office.
Each pharmacy affected by the PBM's payment strategies will receive a written notification from the Oklahoma Attorney General's Office with instructions to collect their due payments. Pharmacies still suspecting that they were paid less than what the drugs cost them, are encouraged to file complaints. While covering the costs of the state's investigation, the settlement also includes fines. Seventy-five percent of these fines will be funneled directly back to the pharmacies affected, with the remaining quarter serving to bolster the Attorney General's oversight of PBMs.
In addition to recovering the monetary disparities, CVS Caremark has agreed to several reforms as part of the settlement. These include the establishment of a national cost benchmark for reviewing payment disputes, granting pharmacies the right to present actual cost documentation when challenging payments, and committing to respond to disputes according to Oklahoma law within 10 days. Also, CVS Caremark will work with the Oklahoma Attorney General's Office over a subsequent 90-day period to resolve any additional complaints. In a state of affairs where many might presume guilt, CVS Caremark maintains its stance of having committed no wrongdoing, agreeing to this settlement as a means to circumvent the costs and uncertainties extended litigation would entail.
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