CVS Caremark Does Not Have “Gag” Clauses

Pharmacy benefit managers (PBMs) contract with independent and national chain pharmacies to help members access affordable medications. In certain cases, the cash price for the medication may be less expensive than the price for the drug under the member’s benefit. In those instances, our contracts with all of our network pharmacies stipulate that the patient should always get the lower price between the pharmacy’s cash price and the plan’s co-pay. Even though our contract terms are clear, some independent pharmacies and policymakers have suggested that CVS Caremark contractually prevents – or “gags” – pharmacists from disclosing the lower cash price for members. This is blatantly false. In fact, at CVS Caremark, we do not and have never prevented pharmacies in our network from discussing the availability of a lower cash price with plan members. We also support federal legislation that prevents companies from instituting these contract provisions