Connecticut Attorney General Richard Blumenthal issued a subpoena to CVS Caremark Corp., after the pharmacy indicated it might cancel a consumer discount drug program in response to a new law that forces CVS to extend discounts to Connecticut”™s Medicaid program.
Woonsocket, R.I.-based CVS Caremark has nearly 140 pharmacies in Connecticut, and at last report had 4,300 employees who live or work in the state.
In a press release, Blumenthal said CVS Caremark”™s actions are at odds with other pharmacies that have extended their discount drug pricing to the state Medicaid program, and may be inconsistent with the company”™s policies in other states.
Under the CVS Caremark Health Savings Pass program, consumers pay $10 a year to fill a 90-day prescription of one of 400 generic drugs, while receiving other benefits. State law requires pharmacies to charge Medicaid the lowest drug price they offer consumers, which the state says obligates CVS Caremark to provide the Health Savings Pass discount, potentially saving taxpayers millions of dollars.
Blumenthal is also investigating whether the proposed cancellation would violate the contractual rights of consumers who paid to enroll in the Health Savings Pass program.
“Many Connecticut residents continue to deal with the dual stresses of economic hardship and inadequate prescription drug coverage,” Blumenthal stated in a letter to CVS Caremark CEO Thomas Ryan. “CVS Caremark”™s intention to abruptly cancel a popular program that has assisted families in defraying the costs of medications is indeed alarming and raises significant legal questions.”
CVS did not immediately state whether it would comply with the subpoena or contest it. Blumenthal wants the company to share all documents relating to the program, including:
- documents demonstrating that an extension of Health Savings Pass discounts to the state Medicaid program make the plan economically unfeasible;
- a list of drugs covered by the program, prices charged enrollees compared to those billed Connecticut”™s Medicaid program, and the actual cost of those medications to CVS Caremark;
- the number of Connecticut consumers enrolled in the Health Savings Pass program and the states where it is offered; and
- consumer contracts and marketing materials.
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