CVS Caremark to Pay Oklahoma $32M in Health Plan Rebate Settlement

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  • Oklahoma AG Gentner Drummond announced a $32.1 million settlement with CVS Caremark to resolve allegations that the company failed to pass along rebates and discounts from drug manufacturers to Oklahoma’s state employee health plan, as required under its contract.
  • Under the terms of the settlement, CVS Caremark must also pay any additional rebate amounts from the 2020-2024 period, pass through all future rebate payments within 90 days of collection, and agree to an expanded definition of “rebate” in its contract with the state. Updated contract terms also require CVS Caremark to report and remit all collected rebates to the state plan on a quarterly basis.
  • After deducting attorney fees for outside counsel, approximately $27 million will be directed to the state plan within 30 days. AG Drummond stated that the funds should be used to benefit state employees, retirees, and their families by helping to lower premiums.
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