House Republicans Investigate CVS Caremark Over Alleged Antitrust Violations

House Republicans are investigating whether CVS Caremark, a major pharmacy benefit manager (PBM), violated federal antitrust laws by allegedly pressuring independent pharmacies to avoid using cost-saving services outside the PBM’s network. According to The Hill, House Judiciary Committee Chair Jim Jordan (R-Ohio) has requested detailed records from CVS regarding its practices around pharmaceutical hubs.

In a letter to the company, Jordan sought documents and communications about these hubs, which are digital services designed to simplify the process of accessing and managing complex, high-cost specialty medications. These hubs, often sponsored by drug manufacturers, act as intermediaries between manufacturers and specialty pharmacies to help patients receive critical medications.

Jordan expressed concern that CVS Caremark’s policies may prevent independent pharmacies from participating in these hubs if they operate outside the PBM’s network. Per The Hill, the congressman argued that this could stifle competition, suggesting that excluding pharmacies from such arrangements could “choke off would-be competitors before they enter the market and lower prices for consumers.”

The letter highlighted the potential consequences for patients, stating that limiting access to pharmaceutical hubs could negatively impact patient welfare and innovation in the healthcare industry. Jordan noted that if CVS Caremark is blocking independent pharmacists from connecting patients to these services, it could undermine efforts to improve access and affordability.

Pharmacy benefit managers like CVS Caremark have faced growing scrutiny from lawmakers and regulators due to their role as intermediaries in the drug supply chain. PBMs negotiate drug prices and terms on behalf of health plans, affecting access to medications for millions of Americans. Critics argue that PBM practices often lack transparency and may contribute to rising drug costs.

Source: The Hill