News Summary
The Louisiana Attorney General is probing CVS Pharmacy for allegedly misusing customer contact information to lobby against House Bill 358, which targets pharmacy benefit managers. Governor Jeff Landry condemned CVS’s actions, calling them patient abuse. The investigation follows CVS sending messages to customers that claimed HB 358 would threaten their pharmacy’s operation. While HB 358 failed, a related bill, HB 264, passed, aimed at improving transparency in pharmacy benefits. This incident highlights ongoing debates over the influence of pharmacy benefit managers on drug pricing and accessibility.
New Orleans, Louisiana – The Louisiana Attorney General is investigating CVS Pharmacy for sending text messages to customers that allegedly misused personal contact information to lobby against proposed pharmacy legislation. On June 11, customers received messages warning that “last minute legislation in Louisiana threatens to close your CVS Pharmacy,” a tactic prompting criticism from state officials.
The text messages were sent in response to House Bill 358 (HB 358), which aimed to prohibit the Louisiana Board of Pharmacy from granting or renewing permits for pharmacies owned or operated by pharmacy benefit managers (PBMs). CVS operates both a drugstore chain and CVS Caremark, a pharmacy benefits manager with significant market influence.
Following the messages, Louisiana Governor Jeff Landry condemned CVS’s actions, labeling them as “patient abuse pushing a political message.” The next day, he called on Attorney General Liz Murrill to investigate and take action against the company. As a result, Murrill issued a cease-and-desist order to CVS, asserting that the pharmacy had engaged in unfair and deceptive practices.
On June 12, during the same legislative session, HB 358 failed to come to a Senate vote before the end of the session. In contrast, another bill, House Bill 264 (HB 264), passed in the Senate. This legislation aims to enhance transparency regarding PBM compensation practices and ensure that prescription drug rebates and discounts are directly beneficial to patients. HB 264 is considered to be less restrictive than HB 358 and has garnered bipartisan support.
Governor Landry has urged residents to contact their legislators to express concerns related to PBMs and the rising cost of prescription drugs. CVS’s text messages included links to draft letters that customers were encouraged to send to lawmakers, advocating against HB 358. One message claimed that the proposed bill would restrict patients’ access to medications at home and detrimentally affect vulnerable patients needing specialty care.
Critics have described CVS’s messaging as misleading, with several lawmakers accusing the company of employing scare tactics. Representative Mandie Landry voiced concerns that such messages would incite fear among patients regarding their access to essential medications. In response, CVS defended its communication strategy, suggesting it was a necessary measure to inform customers about the potential dangers posed by the legislation and claimed that their actions were compliant with legal standards.
The legislative discussion surrounding HB 358 intensified in its final days, marked by rapid amendments made without public hearings. CVS asserted that if the bill were to pass, it would jeopardize the operations of its 119 pharmacies in Louisiana, which serve about 1 million patients. Although HB 358 did not achieve passage, it led to a legislative resolution requesting a study on the effects of PBM ownership on pharmacies—a sign of ongoing scrutiny regarding the role of PBMs in the healthcare landscape.
The incident in Louisiana reflects a larger national conversation regarding PBMs and their influence on drug pricing and accessibility. With rising drug costs and growing awareness of health care transparency, there are increasing calls for reforms that put patients’ needs at the forefront of healthcare policy.
Deeper Dive: News & Info About This Topic
- AP News: CVS Text Messages Investigation
- Wikipedia: Home
- NOLA: Louisiana Legislature Bucks CVS
- Google Search: Louisiana pharmacy legislation
- Shreveport Times: Will CVS Close Pharmacies?
- Encyclopedia Britannica: CVS Pharmacy
- WWLTV: CVS Issues Plea to Louisiana Customers
- Google News: CVS Louisiana legislation
