A PYMNTS Company

CVS Health Nears FTC Settlement Over Insulin Pricing Practices

By  |  March 24, 2026

CVS Health said Tuesday that it has reached a proposed settlement with the Federal Trade Commission tied to insulin pricing, marking the latest development in the long-running regulatory review of pharmacy benefit managers and their role in prescription drug costs, according to Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The company said its pharmacy benefit management arm, Caremark, has consistently worked to reduce prescription drug expenses. CVS added that the settlement process is expected to wrap up in the coming weeks, though the final terms are still pending and will be confirmed once the agreement is officially completed, per Reuters. The FTC declined to comment.

    Pharmacy benefit managers, which determine how medicines are covered by health insurance plans, have faced years of pressure from lawmakers and regulators over how they negotiate prices and rebates. CVS’s proposed agreement appears to follow a template similar to the FTC’s earlier settlement with Express Scripts, the pharmacy benefit manager owned by Cigna.

    A person familiar with the matter said CVS’s proposed deal was modeled on the FTC’s arrangement with Express Scripts. That agreement was finalized about two weeks after it was proposed, and the source said CVS’s settlement could take effect even sooner.

    Related: Express Scripts Reaches Deal With FTC Over Insulin Pricing Practices

    Cigna’s settlement required changes to rebate pricing practices, under which drugmakers provide discounts to pharmacy benefit managers after a medicine is dispensed. Regulators have argued that such arrangements can encourage higher list prices and create incentives to favor more expensive drugs because they generate larger rebates, according to Reuters. The agreement also required greater transparency and a move toward a fee-based compensation model, with potential penalties or further regulatory action if the terms were violated.

    Analysts do not expect major financial fallout for CVS from similar changes. Lisa Gill, an analyst at J.P. Morgan, said adjustments to the way Caremark prices drugs would likely have only a nominal effect on the company’s earnings.

    “We broadly view these as manageable and, importantly, not larger in scope than the changes CVS was already implementing to address regulatory concerns and de-risk its PBM business,” said Gill. She added that the changes would help remove regulatory risk for the company.

    Source: Reuters