News Summary
The Louisiana Attorney General, Liz Murrill, has launched an investigation into CVS Health for allegedly misusing customer data to lobby against a proposed bill that would separate pharmacy benefit managers from retail pharmacies. This investigation comes after CVS sent text messages to customers warning of consequences if the legislation passed, using personal data without consent. Amid scrutiny from lawmakers, CVS defended its actions as necessary for negotiating lower drug costs. The proposed legislation received significant support but ultimately failed in the Senate, leaving ongoing discussions about healthcare regulations in Louisiana.
New Orleans, Louisiana – Attorney General Launches Investigation into CVS for Data Misuse
The Louisiana Attorney General, Liz Murrill, has initiated an investigation into CVS Health Corporation for allegedly misusing customer personal information in a lobbying campaign against proposed state legislation. Murrill plans to issue a cease-and-desist letter to CVS to halt the unauthorized lobbying text messages sent to customers.
The controversy arose during legislative debates regarding a bill aimed at prohibiting companies from owning both pharmacy benefit managers (PBMs) and retail pharmacies. CVS Health operates both CVS retail pharmacies and CVS Caremark, one of the leading pharmacy benefit managers in the United States. The proposed legislation sought to separate these interests to curb potential conflicts of interest and rising drug costs.
During discussions, screenshots of CVS text messages were presented to lawmakers, with one message asserting that the proposed legislation could threaten the closure of CVS pharmacies, increase medication prices, and lead to job losses for pharmacists. CVS further fortified its position by sending messages with links to pre-filled letters encouraging state employees and their families to oppose the legislation, claiming it would restrict medication access for patients in Louisiana.
CVS’s practices have drawn criticism from several lawmakers. Representative Dixon McMakin denounced the misleading nature of CVS’s messages and accused the company of misrepresenting the intentions of the legislation. CVS was reportedly messaging a significant number of state employees and their families, using personal information provided by these individuals for health updates to facilitate their lobbying efforts.
Attorney General Murrill emphasized that customers had not given their consent for CVS to deploy their personal information for corporate lobbying purposes. The CVS communications implied that drastic consequences would follow if the legislation passed, with estimates suggesting the closure of 119 pharmacies and the loss of approximately 2,700 jobs, impacting over 1 million patients. Critics contend that CVS employed fear tactics to sway public opinion against the proposed bill.
CVS defended its actions by claiming that the text messages were a response to last-minute changes made to the legislation without public hearings. The company insists that its lobbying efforts were aimed at negotiating lower drug costs for customers and expanding access to affordable medications.
The legislative proposal had garnered overwhelming support in the House, passing with a vote of 88-4, but ultimately failed in the Senate. Governor Jeff Landry supported the legislation and has called for a special session to address similar measures in healthcare and prescription drug costs moving forward.
A 2024 Federal Trade Commission report highlighted concerns about the influence and profits of entities like CVS, which are positioned as intermediaries in the pharmaceutical supply chain. Lawmakers have expressed concerns regarding the potential for these middlemen to inflate drug prices, which was a driving factor behind the proposed legislation.
As the legislative session concludes, discussions around healthcare and prescription drug costs remain a priority. Leaders are considering further actions aimed at regulating the practices of pharmacy benefit managers and enhancing the accessibility of medications for all Louisiana residents.
Deeper Dive: News & Info About This Topic
- NOLA: CVS Bill Stirs Fierce Debate in Louisiana Legislature
- Fox 8 Live: Landry Demands Investigation After CVS Mass Text
- Shreveport Times: Will CVS Close Pharmacies in Louisiana?
- Wikipedia: CVS Health
- Google Search: CVS pharmacy legislation Louisiana
