The FTC has concluded its investigation of a CVS Caremark Corp. subsidiary’s actions related to the Medicare Part D prescription drug program. The PBM will enter a consent order that requires it to pay $5 million into a fund intended for compensation to consumers who purchased coverage from Rx America for the 2008 plan year. That company is a subsidiary of Longs Drug Stores Corp., which CVS Caremark acquired in October 2008.
According to the PBM, “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. The consent order will be published in the Federal Register and is subject to comment for 30 days.”
The FTC made no allegations of antitrust law violations or anticompetitive behavior and said this concluded its investigation into allegations of deceptive pricing.
The National Community Pharmacists Association, however, said in a statement that “it is regrettable that the FTC’s actions fell short of more robust protections for consumers and pharmacy competition, which are warranted in our view.”
What do you think about the outcomes of the FTC’s investigation? Do you think it will have any impact on other Medicare drug plan sponsors?