Louisiana Reaches $45 Million Settlement with CVS Health

A pretty big legal feud between Louisiana and CVS health is over. Louisiana Attorney General Liz Murrill has announced the two sides have reached a settlement of three separate lawsuits.

The state filed suit against CVS Health and its related pharmacy benefit manager subsidiary. Murrill says this deal is expected to result in "a significant financial recovery for the State of Louisiana and its taxpayers."

READ MORE: SNAP changes now in effect in Louisiana

This settlement resolves suits filed by Louisiana against CVS regarding the following issues:

1. Various allegations related to consumer communications on pending legislation.

2. Various alleged regulatory issues in PBM practices by CVS.

3. Alleged harm to Louisiana’s independent pharmacies due to unfair competition.

This settlement will bring about $45 million in funds to the State of Louisiana.

READ MORE: Louisiana Obesity Numbers Are Not Good

Murrill says this money will be used to implement pharmacy benefit legislation and Medicaid fraud initiatives in collaboration with the Inspector General and the Louisiana Department of Health.

Get our free mobile app

Murrill Issued This Statement on the Deal

These cases involved conduct directly impacting Louisiana citizens. Rather than prolonging litigation, which could have extended several years, we worked with CVS to reach a resolution that serves the best interests of Louisiana. The funds will be used to further ensure accountability in pharmaceutical pricing and PBM industry practices,

Attorney General Murrill noted that the CVS was cooperative throughout the process and committed to being a constructive partner in Louisiana’s health care system.

The settlement resolves the matters without any admission of liability or wrongdoing by the companies.