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.
___
(c)2017 Austin American-Statesman, Texas
Visit Austin American-Statesman, Texas at www.statesman.com
Distributed by Tribune Content Agency, LLC.


Another Insurer Steps Back From Illinois Exchange
GAO Issues Report on Terrorism Risk Insurance
Advisor News
- Berkeley arts tax heads toward passage while public bank measure looks likely to fail
- Americans’ sense of overall prosperity still ticks upward
- Turning expanded eligibility into a better coverage plan for federal clients
- Election 2026: Which of Berkeley's 7 ballot measures will pass?
- How advisors can help frugal retirees finally enjoy their savings
More Advisor NewsAnnuity News
- AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
- Jackson reports record annuity sales, increases share repurchase authorization
- Why the market doesn’t need more carriers
- Equitable, Corebridge steam toward merger with strong Q3 annuity sales
- Jackson Announces New Annuity Offering for AARP Members
More Annuity NewsHealth/Employee Benefits News
- CVS Health will split into two new companies. What does it mean for Hartford-based insurer Aetna?
- An Application for the Trademark “ALMERA” Has Been Filed by Health Care Service Corporation: Health Care Service Corporation
- Reports Outline Managed Care Study Findings from Ohio State University (Factors Associated With Pretreatment Patient Attrition in an Advanced Orthodontic Education Clinic: A Cross-Sectional Study): Managed Care
- State: Beware of unlicensed health coverage marketed by LifeX Research Corporation
- Kirksville school board to meet Friday on benefits association agreement, 2027 health insurance rates
More Health/Employee Benefits NewsLife Insurance News
- Brighthouse Financial Announces Third Quarter 2026 Results
- Prudential earnings dip as Japan sales suspension offsets U.S. growth
- U-Haul Holding Company Reports Second Quarter Fiscal 2027 Financial Results
- Genworth Financial Announces Third Quarter 2026 Results
- AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
More Life Insurance News