Senator Sykes Blasts CVS Caremark's Move to Shield How They Profit Off Taxpayer Dollars
Report would reveal how drug pricing tactics led to $223M annual profit
July 17, 2018
Vernon Sykes News
Today, state Senator Vernon Sykes (D-Akron) criticized a move by CVS Caremark to prevent the release of a report analyzing how much pharmacy middlemen profit off of their relationship with the Ohio Medicaid program.
“For too long, pharmacy benefit managers have operated in the shadows with very little oversight. Releasing this report will help to bring their actions to light,” said Senator Sykes. “CVS Caremark claims they are trying to protect proprietary information, but what they’re really worried about is Ohioans realizing how badly they’re getting ripped off.”
CVS Caremark has requested a temporary restraining order to block release of the report. Today, Franklin County Common Pleas Court Judge Jenifer French scheduled a July 25 hearing to consider the request.
The report was commissioned by the Department of Medicaid after accusations that CVS Caremark was making large profits at taxpayers’ expense. According to a recently released executive summary of the report, pharmacy benefit managers collected $223 million more than they paid in reimbursements to pharmacies.
“This egregious and outrageous situation is a two-sided scam,” said Senator Sykes. “First, it’s a misuse of our taxpayer dollars. When CVS Caremark contracted with the State, it agreed to be a good steward of the public’s money. Ohioans deserve full transparency in how their dollars are spent. Second, this situation is an exploitation of our most vulnerable citizens. Medicaid serves the less fortunate and when the program is administered inefficiently, it is poor Ohioans who suffer. This is a slap on both sides of our face, and it’s shameful.”
“For too long, pharmacy benefit managers have operated in the shadows with very little oversight. Releasing this report will help to bring their actions to light,” said Senator Sykes. “CVS Caremark claims they are trying to protect proprietary information, but what they’re really worried about is Ohioans realizing how badly they’re getting ripped off.”
CVS Caremark has requested a temporary restraining order to block release of the report. Today, Franklin County Common Pleas Court Judge Jenifer French scheduled a July 25 hearing to consider the request.
The report was commissioned by the Department of Medicaid after accusations that CVS Caremark was making large profits at taxpayers’ expense. According to a recently released executive summary of the report, pharmacy benefit managers collected $223 million more than they paid in reimbursements to pharmacies.
“This egregious and outrageous situation is a two-sided scam,” said Senator Sykes. “First, it’s a misuse of our taxpayer dollars. When CVS Caremark contracted with the State, it agreed to be a good steward of the public’s money. Ohioans deserve full transparency in how their dollars are spent. Second, this situation is an exploitation of our most vulnerable citizens. Medicaid serves the less fortunate and when the program is administered inefficiently, it is poor Ohioans who suffer. This is a slap on both sides of our face, and it’s shameful.”