The Florida attorney general‘s Office has launched a significant investigation into CVS Health Corporation and its pharmacy benefit manager (PBM)Caremark. The probe focuses on potential unfair business practices that could be harming Florida families, seniors, and independent pharmacies across the state.
Attorney General James Uthmeier announced that his office issued a Civil Investigative Demand to CVS Health, which owns both Caremark and hundreds of CVS retail pharmacies in Florida. This legal tool compels the company to produce thousands of documents and provide sworn testimony related to its business practices.
Concerns over market dominance and unfair competition
The investigation centers on whether CVS and Caremark have leveraged their market position to direct patients toward CVS-owned pharmacies. Concerns include potential preferential reimbursement rates for CVS-affiliated pharmacies compared to independent competitors for identical prescriptions. Additionally, the probe examines burdensome audits and restrictive contracts that could threaten smaller pharmacies’ viability.
Pharmacy benefit managers like Caremark play a crucial role in the prescription drug market. They determine which medications are covered by insurance plans, set pharmacy reimbursement rates, and influence where patients fill their prescriptions. The three largest PBMs, including Caremark, handle approximately 80 percent of prescriptions in the United States. CVS Health owns more than 9,000 pharmacies nationwide, with roughly 800 in Florida, raising concerns about vertical integration and potential self-preferencing.
State officials and advocates respond to the investigation
Agency for Health Care Administration Secretary Shevaun Harris expressed support for the investigation, stating that Floridians expect a healthcare system that works for them, not against them. She emphasized that the Attorney General’s action is a crucial step toward ensuring accountability of PBMs.
Aneesh Lakhani incoming president of the Florida Pharmacy Association praised the move, declaring that the era of unchecked PBM abuse in Florida is over. He emphasized that patients and the state deserve better, asserting that PBMs have broken the system and must be held accountable.
Potential impacts on Florida communities
The investigation aims to determine whether CVS Health and Caremark’s practices have limited consumer choice, increased prescription costs, or contributed to pharmacy closures and so-called pharmacy deserts in Florida communities. These areas lack adequate pharmacy services, disproportionately affecting seniors and low-income families.
The Civil Investigative Demand requires CVS Health and Caremark to comply by July 28, 2026 providing extensive documentation and testimony. State officials are committed to uncovering the truth and protecting fair competition for all Floridians.
