CVS Caremark Settles Charges Over Prescription Prices

January 12, 2012
New York Times
By Reed Abelson and Natasha Singer

After more than two years of investigation, CVS Caremark agreed on Thursday to pay $5 million to settle charges by the Federal Trade Commission that the company had misrepresented the price of certain prescription drugs in one of its Medicare drug plans, causing many older consumers to pay significantly higher prices than advertised.

The settlement comes at a time of intensive government scrutiny of pharmacy benefits managers like CVS Caremark, companies that manage prescription drug plans for employers and insurers. The F.T.C. is currently reviewing the proposed mergerof the two main competitors to CVS Caremark: Medco Health and Express Scripts.

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