NU Online News Service, July 2, 2004, 1:03 p.m. EDT
The Washington state attorney general is asking for information about pharmacy benefit management programs affiliated with Caremark Rx Inc., Birmingham, Ala.[@@]
Caremark Rx manages prescription drug programs for many large health insurers and self-funded health plans. It recently acquired AdvancePCS, Irving, Texas, another large PBM, for $5 billion in stock and $500 million in cash.
The Washington state attorney general is asking about compliance with consumer protection laws at the parent company and at the AdvancePCS and Caremark Inc. units, Caremark Rx says.
The Washington state attorney general “has indicated that additional civil investigative demands, or administrative subpoenas, will be issued by the attorneys general of 18 additional states,” Caremark Rx says in a statement about the information request.
“Caremark believes that its business practices comply in all material respects with applicable laws and regulations,” the company says. “The company intends to fully cooperate with the requests for information. There can be no assurance as to the timing associated with the review of such information or the outcomes or consequences of such review.”