The action by the company, according to the FTC, caused seniors and consumers with disabilities to pay significantly more for drugs. It also pushed them more quickly into the so-called “doughnut hole,” in which drug costs aren’t covered by the federal program.
The money will be used to reimburse consumers.
CVS Caremark released a statement:
“During the course of this two year investigation, our company cooperated fully with the FTC and provided to the government millions of documents as well as access to numerous members of our management team who participated in voluntary interviews and depositions,” said Douglas A. Sgarro, Executive Vice President and Chief Legal Officer of CVS Caremark. “It is important to note that, at the conclusion of this comprehensive investigation, the FTC made no allegations of antitrust law violations or anti-competitive behavior associated with any of our business practices, products or service offerings.”
Pursuant to the consent order, CVS Caremark will deposit $5 million into a fund that will be used to compensate consumers who purchased coverage for the 2008 plan year from a Medicare Part D Prescription Drug Plan sponsored by Rx America, a subsidiary of Longs. The fund is being established as a result of Rx America inadvertently posting on a website maintained by the Centers for Medicare and Medicaid Services (CMS) inaccurate pricing information for certain generic drugs. In addition, CVS Caremark agreed on a go forward basis to refrain from making any misrepresentations regarding drug pricing information relating to affiliate sponsored Medicare Part D plans.