AG James files antitrust lawsuit against CVS Health

New York Attorney General Letitia James has filed a lawsuit against CVS Health Corp., accusing the company of violating antitrust laws and hurting New York safety net hospitals and clinics that provide care for underserved communities across the state.

According to a press release issued by James”™ office, CVS required New York safety net hospitals and clinics to exclusively use the CVS-owned company Wellpartner to process and obtain federal subsidies on prescriptions filled at CVS pharmacies. As a result, James asserted, CVS forced safety net health care providers to incur millions in additional costs, while CVS continued to benefit through its subsidiary.

“While safety net health care providers are tackling public health crises and helping underserved communities, CVS is robbing them out of millions of desperately needed funds that could improve patient care,” said James. “CVS”™s actions are a clear example of a large corporation using its clout and power to take advantage of institutions and vulnerable New Yorkers, but my office will not allow it. We are taking action to stop CVS”™s harmful practices and recoup critical funds to improve health care for our communities. When powerful corporations undermine the health and wellbeing of vulnerable communities in New York, they can expect to hear from my office.”

James is seeking injunctive relief, equitable monetary relief for the lost revenue and additional costs safety net health care providers were forced to incur, and civil penalties for CVS”™ unfair and illegal business practices. She is also seeking to have CVS inform all safety net health care providers that they are not required to exclusively use Wellpartner.

Photo by Mike Mozart / Flickr Creative Commons