Florida opens investigation into CVS Caremark over alleged anticompetitive pharmacy practices

CVS Health is facing a new regulatory inquiry after Florida’s attorney general opened an investigation into its Caremark business, according to a report published Tuesday.

The investigation targets Caremark, CVS Health’s pharmacy benefit manager, a company that administers prescription drug benefits for insurers and employers. Pharmacy benefit managers typically negotiate with drugmakers and pharmacies, set reimbursement rates, and design formulary and network rules that influence which medications patients are able to access and at what cost.

The state’s probe, as described in the report, focuses on allegations that Caremark engaged in anticompetitive practices. The reporting indicates the inquiry includes claims that the company steers patients in ways that can reduce competition in pharmacy services and prescription drug access.

Caremark’s contractual role means its policies can affect the practical path from a patient’s prescription to a dispensed medication, including which pharmacies participate in a plan’s network and how certain drugs are offered. That makes PBM conduct a common focus for regulators scrutinizing drug pricing and access, even when PBMs do not directly own the pharmacies that dispense prescriptions.

For CVS Health, the development adds to the scrutiny PBMs have faced in recent years, particularly around how benefit design influences patient and provider choice. Even when disputes turn on internal plan rules rather than illegal conduct, investigations can increase compliance costs, slow new contracting activity, and elevate the chance of negotiated settlements or litigation.

In the reported account, details about the specific alleged practices, the timeline of investigative steps, and whether any preliminary findings have been made were not laid out publicly. The report also does not specify whether the attorney general’s office is seeking documents, depositions, or other remedies.

As the matter develops, investors and pharmacy industry participants will likely watch for whether CVS Health provides a formal response, how it characterizes its Caremark contracting and benefit design practices, and whether the state identifies particular policy levers tied to the steering allegations.

It also remains unclear from the reporting whether the investigation is confined to one state’s markets or is intended to address broader practices that may affect multiple jurisdictions through PBM systems, national formularies, and network arrangements.