WV investigating CVS Caremark
By Cecelia Mason
June 17, 2010 ·West Virginia is one of at least 25 states and the federal government investigating complaints that CVS Caremark is treating other pharmacies unfairly.
The issue has been escalating for about three years since the drug store operator CVS bought Caremark, the insurance benefits manager.
Owner and pharmacist Ken Trenary, of South Berkeley Pharmacy in Inwood, has seen a decline in his business and he blames for luring long-time customers to the nearby CVS or forcing them to get their maintenance drugs by mail order.
We have a large group of 3M retirees in our community and they have Caremark as their carrier and weve serviced those customers for a very long time here and now we have a lot of them very angry coming in because theyve been here forever, they dont want to go to CVS they dont want to mail the prescription away but now they have no choice, Trenary said.
Trenary claims CVS Caremark is either denying drug benefits to customers who dont use mail order or a CVS pharmacy, or is tacking an additional $35 fee on prescriptions filled elsewhere.
Richard Stevens, Executive Director of the West Virginia Pharmacists Association, maintains CVS Caremarks actions are a violation of a state law that says no pharmacy should enter into an agreement that prevents free choice of pharmacy.
The patient is being influenced to go to a CVS pharmacy or to CVS mail order, or theyve been limited or restricted to going to CVS, Stevens said. So its not only an economic issue its what I would consider a legal right of the public to have a choice of where they want to secure their services.
Stevens organization has filed a complaint with the Board of Pharmacy, the organization responsible for licensing and enforcing state pharmacy laws.
The public, the citizen, the consumer really doesnt have much of a choice, Stevens said. They are steered to the CVS pharmacy or they pay a financial penalty, or they receive no benefit for their prescription drug coverage of which theyre entitled to receive a benefit because theyve paid a premium or their employers have paid a premium for their prescription drug insurance.
Trenary decided to address the problem by asking to join the Caremark 90-day prescription plan.
I hadnt written a letter to them but I did call on the phone, requested that that information be sent to me so I could sign up as a provider, Trenary said. But I was denied by the Caremark representative, they said that was an exclusive plan that was only going to be offered to CVS, that I could not participate.
Trenary said pharmacy benefits management companies are supposed to treat all pharmacies the same.
However since CVS and Caremark are partnered theyre one and the same, they are the same company, so theres a huge incentive for them to control where people are shopping, Trenary said. Theres a huge incentive for them to maybe alter those contracts or not offer them at all.
David Potters, Executive Director, West Virginia Board of Pharmacy, said investigations are not public and cannot be discussed.
Potters said when a complaint is filed a committee decides whether theres probable cause. If probable cause is found, a hearing takes place. If not, the case is dropped.
Stevens has also asked the state Attorney Generals office to look into the matter. Doug Davis, Assistant Attorney General, cannot confirm or deny that an investigation is taking place.
The Federal Trade Commission confirms both its anti-trust and consumer protection divisions are investigating but can make no further comment.
CVS Caremark did not respond to a request for an interview.