Pharmacy benefit manager Caremark Rx has agreed to pay a total of $38.5 million to 28 states and the District of Columbia to settle charges that it manipulated doctors into changing prescriptions that favored the company. The investigation concluded that Caremark convinced doctors to switch their patients over to specific brand-name medications without disclosing its own financial interest in their doing so. Caremark, which is admitting no wrongdoing, allegedly twisted doctors' arms because it was getting big volume discounts on the drugs it was pitching. As part of the settlement, Caremark has agreed to follow terms of a prescription fulfillment policy which, among other things, forbids it from recommending drug changes if the proposed drug will cost consumers or employers more than the originally-prescribed drug.
To learn more about the settlement:
- read this Modern Healthcare article [1] (reg. req.)
Related Articles:
Caremark settles whistleblower suit for $137.5 million. Report [2]
CVS to acquire Caremark Rx. Report [3]
Links:
[1] http://modernhealthcare.com/apps/pbcs.dll/article?AID=/20080214/REG/323420541
[2] http://www.fiercehealthcare.com/story/caremark-settles-whistle-blower-suit/2005-09-09
[3] http://www.fiercehealthcare.com/node/4164