Latest news with #HouseBill358
American Press
28-06-2025
- Business
- American Press
Jim Beam column:CVS lawsuits won't solve PBM concerns
CVS has been targeted by three lalwsuits filed by the Louisiana attorney general for irs questionable practices.(Photo courtesy of Louisiana legislators and the state's citizens got acquainted near the end of this year's fiscal session with organizations we have heard little about — pharmacy benefit managers (PBMs). Large employers and health insurance companies pay PBMs to act as middlemen to negotiate drug prices. House Bill 358 by Rep. Dustin Miller, D-Opelousas, was one of three measures filed dealing with PBMs. A conference committee changed the bill and it ended up saying that no permit to operate a pharmacy can be granted or renewed to a pharmacy that is wholly or partially owned or controlled by a pharmacy benefit manager. Miller's bill passed the House 95-0 and the Senate 37-0. However, the House rejected changes made by the Senate and a conference committee was eventually appointed to iron out the differences between the two chambers. The PBM change that was inserted into the bill by the conference committee was accepted by the House but the legislation died in the Senate. Senate President Cameron Henry, R-Metairie, later explained that there was no testimony on that complicated change in the bill. Donald Trump Jr., a friend of Louisiana Gov. Jeff Landry, said that bill should pass the Legislature. Landry got so upset when it didn't, he is still threatening to call a special session to pass it. If a Trump says do it, Landry always goes to war in order to get it done. The Advocate reported that Amy Thibault, a spokesperson for CVS, which owns both a PBM and a nationwide chain of drug stores, said the bill would have forced it to close its 119 stores in Louisiana. She said it would affect about 1 million patients across the state and 22,000 patients who receive high-cost specialty drugs that smaller pharmacies find difficult to handle. An anti-PBM bill did pass. Rep. Michael Echols, R-Monroe, sponsored HB 264 that passed both houses unanimously. The newspaper said it favored independent pharmacies by prohibiting PBMs from steering customers to pharmacies they own and by mandating that discounts negotiated by PBMs go to employers and consumers. Echols' bill has been sent to Gov. Landry, but he hasn't signed it or vetoed it yet. However, we know he's still upset because The Advocate reported that the state has filed three lawsuits against CVS accusing it of 'unethical and deceptive acts' in its use of customer data for political lobbying. All three cases allege that CVS violated Louisiana's Unfair Trade Practices and Consumer Protection Law. One lawsuit says the text messages CVS sent to its customers were 'inaccurate, misleading and deceptive.' And that they were intended to incite fear among vulnerable people. The second suit alleges the company has used its size and control of insurers, PBMs and drugstores to squeeze out competition and drive up drug costs. The third lawsuit accuses CVS of abusing its market power to 'inflict economic harm' and impose unfair fees on independent pharmacies 'under threat of being expelled from the CVS network.' The Center Square said CVS Health is pushing back against claims that the company engaged in deceptive, anticompetitive practices. In a statement, CVS called the lawsuits 'without merit' and pledged to defend itself vigorously. CVS said, 'Our communication with CVS customers, patients and members of the community was consistent with the law.' Rather than filing lawsuits, state Sen. Kirk Tallbot, R-River Ridge, had a better solution. When the Senate refused to approve Miller's bill he sponsored Senate Resolution 209. The resolution requests the Louisiana Department of Health to study the impacts of prohibiting pharmacy benefit manager ownership of pharmacies in Louisiana and to submit a report to the Legislature. I found a helpful explanation about PBMs at in a story that said they were created to negotiate better deals for consumers on medicines. However, it said instead PBMs 'have sometimes driven up the cost of prescriptions — while also putting the survival of community pharmacies at risk.' So, it's possible that Landry and legislators should do something to prevent that from happening, However, rushing to judgment with lawsuits seldom solves major problems. More information on PBMs would better serve the legislators who pass this state's laws and the people who are served by the state's drugstores. Henry said Miller's bill wouldn't have taken effect until 2027. Instead of lawsuits, PBMs can be debated during the 2026 legislative session to give legislators the background they need on PBMs. Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at 337-515-8871 or Reply Forward Add reaction
American Press
26-06-2025
- Business
- American Press
CVS responds to Louisiana lawsuits, says they are 'without merit'
(Special to the American Press) CVS Health is pushing back against claims from Louisiana Attorney General Liz Murrill and Gov. Jeff Landry that the company engaged in deceptive, anticompetitive practices, calling the state's lawsuits 'without merit' and pledging to defend itself vigorously. In a statement provided to The Center Square, CVS said its communications with Louisiana customers were lawful and did not rely on personal information from the Office of Group Benefits, which manages health benefits for state employees. 'To be clear, we did not use any Office of Group Benefits member information, and we agree with Governor Landry and Attorney General Murrill that OGB data should not be used for this type of outreach,' the company said. 'Our communication with CVS customers, patients and members of the community was consistent with the law.' The company said it launched the messaging campaign to alert customers about a potential disruption in access to its pharmacies, which include 119 retail locations in Louisiana, home delivery services, long-term care pharmacies and specialty pharmacies. 'Our customers were clear: They want access to CVS Pharmacy, and our colleagues were clear: They want to serve their friends, families, and neighbors in Louisiana,' CVS said. The remarks come in response to three lawsuits announced by Murrill, which accuse CVS of misusing prescription-related contact information to oppose a bill in the Legislature, engaging in anticompetitive 'vertical integration,' and using unfair pricing tactics that harmed independent pharmacies across the state. Murrill and Landry argue the July 2025 text message campaign violated consumer privacy and was a deceptive attempt to lobby against House Bill 358, which aimed to limit the power of pharmacy benefit managers such as CVS Caremark. Landry, whose wife received one of the text messages, called the effort an abuse of patient trust. 'Their goal is not to cut costs for patients — it's to inflate profits for shareholders,' Landry said. CVS denied that characterization and defended its business model, which combines pharmacy services, health insurance, and benefit management under one umbrella. 'Our integrated model delivers value to members, patients, customers, and clients by providing better access, affordability, and advocacy for those we serve,' the company said. 'By combining health care delivery, pharmacy, health care benefits, and pharmacy benefit management, we make it easier for people to have what they want the most: a connected care experience.' The company also rejected accusations that its pricing practices are predatory toward independent pharmacies, arguing that its retail pharmacies offer the lowest cost in Louisiana's state contract — an average reimbursement of $141 per prescription, compared to $149 for independent pharmacies. 'Removing CVS Pharmacy from Louisiana will increase the cost to the state by more than $4.6 million,' the company said. CVS further noted that it won the most recent contract to manage the OGB's pharmacy benefits through a competitive bidding process, scoring 5% higher than the second-place bidder. On claims that CVS relies on a foreign-based group purchasing organization to inflate costs, the company said its GPO is based in the U.S. As for the broader effort by the state to regulate PBMs, CVS said, 'A properly functioning competitive market should not mandate higher reimbursement rates to less efficient pharmacies. The result would be an increase in the number of more expensive independent pharmacies and higher costs for consumers.' Murrill maintains that CVS's business model undermines competition and hurts Louisiana communities. 'We've lost pharmacies around our state, and we've had to come in and surround those areas with additional services, sometimes that even costs us more money,' Murrill said. 'So, whatever we can justify we're going to seek.' The lawsuits are part of a wider crackdown on PBMs in Louisiana, which also includes lawsuits against OptumRx and Express Scripts and a new law imposing stricter transparency requirements. Together, the three companies control about 80% of the PBM market nationwide.
Yahoo
13-06-2025
- Business
- Yahoo
CVS targeted by Louisiana AG for unsolicited text messages
BATON ROUGE, La. (KTAL/KMSS) – Louisiana Attorney General Liz Murrill says that recent actions taken by the drug store chain CVS to oppose a bill being considered in the Louisiana Legislature are unfair and deceptive. The Louisiana Attorney General's Office issued a cease and desist notice to CVS, claiming the retailer had violated the Louisiana Unfair Trade Practices and Consumer Protection Law, R.S. 51:1401. The AG said it received information that on June 11, 2025, they received information that CVS/Caremark manages the drug plans for thousands of Louisiana citizens and state employees through the Office of Group Benefits, 'improperly appropriated, for its own use, the personal contact information of Louisiana OGB members and other Louisiana customers by sending them unsolicited and unwanted text messages for political reasons.' Cease-and-Desist-CVS-6.12.2025Download According to the AG, the information provided in the text messages contained 'inaccurate and deceptive statements' regarding House Bill 358 introduced during the 2025 Regular Session of the Louisiana Legislature as an attempt to urge recipients to contact their representative to oppose the bill, a violation of state law. AG Murrill advised CVS to end the action, saying that failure to do so may result in the state taking legal action against the retail pharmacy. The link included in the text message no longer provides information about HB 358. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-06-2025
- Business
- Yahoo
Gov. Landry threatens special session over failed prescription drug prices bill
A pharmacy technician fills a container with pills to put into a drug dispensing machine for an automated line at a pharmacy in Midvale, Utah. () A low heat that's simmered for weeks over an attempt to lower prescription drug prices in Louisiana increased to a boil Thursday in the waning hours of the state legislative session, with Gov. Jeff Landry saying he will bring lawmakers back to Baton Rouge to address prescription drug policy. The eight-week regular session ended with lawmakers backing the less stringent of two measures aimed at regulating pharmacy benefit managers, often referred to as PBMs or 'middlemen' that oversee prescription drug programs for insurance companies and large employers. PBMs have faced increasing criticism from patient advocate groups who blame them for high medication prices, while independent drugstore owners say they unfairly favor large corporate pharmacies. Some of the country's largest pharmacy chains, including CVS, also operate a PBM, which critics have said leads fewer pharmacy and medication options for consumers. Landry wanted lawmakers to pass a more aggressive bill that would have prohibited companies from owning drug stores and pharmacy benefit managers, which would have threatened companies such as CVS who own both. The Senate declined to bring House Bill 358, by Rep. Dustin Miller, D-Opelousas, up for a final vote, however, allowing it to die before the legislative session ended. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Instead, the legislature passed what had been seen as a compromise between the corporate chains and independent pharmacists in House Bill 264, by Rep. Mike Echols, R-Monroe. The bill requires PBMs to be more transparent about their practices with state regulators and to pass more prescription savings on to consumers. The Senate also hastily drafted and approved a resolution instructing the Louisiana Department of Health to study the impact of banning PBMs from also owning pharmacies and to produce a report on the subject ahead of the legislature's 2026 regulation session next March. ,Landry was upset the lawmakers didn't go farther, however, and threatened to haul the lawmakers back into session later this summer to pass the same proposal. 'Yes we will have a special session to lower prescription drugs for our citizens. It's that important!' Landry said in an email from his spokeswoman Kate Kelly shortly before the bill failed. It's not clear when the governor would call a special session focused on PBMs. Several lawmakers said he was already on his way to France for the International Paris Air Show which starts Monday. He cannot sign off on the paperwork needed for a special session while outside of the state of Louisiana. Senate President Cameron Henry, R-Metairie, told reporters after adjournment the complexity of Miller's bill, along with feedback from stakeholders, led to the decision to back alternative measures. . 'The more that members had the opportunity to really digest what that bill would do – and the conversations they were having back home with both their local pharmacy, the chain pharmacist, who it was going to affect – we really had a difficult time getting a true grasp of what the bill was going to do,' Henry said. The Senate president said opposition from senators to the Miller bill grew over the day Thursday as more constituents and lobbyists reached out to members. He also said a special session on PBM legislation seems unnecessary because the Landry-backed bill wasn't even supposed to get implemented for another two years. 'I don't know why you would call a special session for a bill that doesn't take effect until 2027,' Henry said. Arkansas approved a law similar to the Miller bill earlier this year and currently faces federal lawsuits from two of the country's largest pharmacy benefit managers. Henry expressed reluctance to follow their lead. The Miller proposal drew strong opposition from a plaintiff in one of the Arkansas cases – CVS, which owns the pharmacy benefit manager CVS Caremark. Its campaign to defeat the bill included sending text messages to thousands of members of the public, including state employees and their families Thursday, which led the governor to direct Attorney General Liz Murrill to investigate the company's actions. CVS Caremark contracts with the state Office of Group Benefits for billions of dollars to manage insurance coverage for state employees and retirees. 'This is not an appropriate use of personal information obtained through a state contract.' Murrill said Thursday morning in a news release. CVS had said the Miller bill would force it to close more than 125 stores in Louisiana, leading 2,700 employees to lose their jobs. 'Closing drug stores doesn't lower drug prices. Forcing out 20% of the state's pharmacies only makes pharmacy deserts worse,' Amy Thibault, CVS executive director of corporate communications, said in an email. When Echols made the final pitch for his compromise legislation Thursday in the House, he singled out CVS for criticism, noting he had talked with Murrill about her pursuing charges against the company for violating terms of its state contract when it sent its mass text message to state workers. 'This House is not for sale. This legislature cannot be bullied,' Echols said. Randal Johnson, with the Louisiana Independent Pharmacies Association, said the Echols bill will be a vast improvement over the current PBM regulations in Louisiana. 'We believe the consumer will have an opportunity to find out what their drugs costs, and the consumer will have the opportunity to have a less expensive cost of medication' under the Echols legislation, Johnson said. A special session can last no longer than 30 days, and its subject matter will be limited to what Landry wants to discuss if he decides to call it. Piper Hutchinson contributed to this report. SUPPORT: YOU MAKE OUR WORK POSSIBLE
