Showdown looms between CVS pharmacies and Texas Medicaid regulators
And while several pharmacies have settled with the state and gone about their business, CVS is giving the state its stiffest opposition yet. Five years of negotiations have resulted in competing lawsuits filed recently in
CVS' lawsuit, filed in late December, insists the pharmacy had the state's blessing to use the prices that are now in question for
The state estimates CVS has made between
In its lawsuit against the state, CVS says the amount in dispute is
If the disagreement goes to a jury trial -- and it will if a settlement isn't reached -- CVS runs the risk of being banned from the state's
There is similar litigation pending against CVS in
"They've never made any attempt to comply with a
Trying to match
Other pharmacies have been accused of using similar tactics. In
The payouts are split into four shares -- one for the federal government, which helps fund the state
The state has also received damages from federal lawsuits filed against
In 2006, the big box department store rocked the pharmacy industry by offering generic drugs at
However, the lawsuit says when the profit hit became too much to bear, CVS created a program called the
CVS says the price associated with the
In 2015, CVS discontinued the
CVS spokesman
"The company believes that it complied with
CVS says in its lawsuit against the state that
Winter said CVS never had permission to report the prices it reported and that the pharmacy's representatives misled Vasquez, who said during the call that he'd get back with them if he had any issues with their pricing plan.
"As far as we know, that's where the conversation ended," Winter said. "There was never any official response from the state of
Editor's note: This story has been changed to correct an error about oversight of the attorney general's medicare fraud division.
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