The Federal Trade Commission has officially inked a second settlement with one of the "Big Three" pharmacy benefit managers in an ongoing legal battle over insulin prices.
The agency announced Tuesday afternoon that it had reached a formal settlement with CVS Health's Caremark. That the two parties had reached an agreement was first revealed in March, though details of the settlement were not disclosed at the time.
The FTC said in an announcement that the deal should generate up to $8.5 billion in consumer savings over the next decade. CVS has agreed to "delink" its fees from drug list prices and allow community pharmacies to shift to a cost-plus pricing model.
The settlement generally aligns with the agreement the agency reached with Express Scripts in February.
The settlement also "prevents Caremark from unfairly interfering with pharmacies’ ability to work with hub service providers," per the FTC press release.
“The FTC under President Trump won’t stand for anticompetitive behavior that drives up prices for American consumers,” said Chairman Andrew N. Ferguson in the announcement.
In its own press release, CVS offers further details on changes it's agreed to make in its standard benefit offering. The company said it will align certain member costs with the net cost of medications after rebates, which will present more savings at the point-of-sale.
CVS will also expand transparency by offering broader reporting on pricing, rebates and member payments as well as disclosures on broker and consultant competition. The company will also count purchases through the White House's Trump Rx platform toward deductibles and out-of-pocket maximums when possible, according to the announcement.
CVS said that many of these agreements align with efforts that are already underway at the company to boost transparency and drive greater affordability.
Some provisions, such as "delinking" fees, were included in the health funding deal finalized earlier this year that codified certain reforms for the PBM industry.
"Today’s agreement advances and reinforces the changes we have already put in place and ensures affordability for families and patients across the country," said Ed DeVaney, executive vice president of CVS Health and president of CVS Caremark, in the release. "CVS Caremark remains committed to lowering costs and bringing greater transparency to prescription drug pricing."
UnitedHealth Group's Optum Rx remains the last of the "Big Three" without a final settlement, though in mid-June the company also appeared poised for a final agreement with the FTC.