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The CVS “Emergency” Contract is Bad for Patients and Pharmacies - We MUST Speak Out on Monday 9/28

Attention Members: On Monday, September 28th at 1:00 PM, the Joint Legislative Committee on the Budget (JLCB) will vote on a proposed emergency contract between the Office of Group Benefits (OGB) and CVS Caremark.


We oppose this contract and urge you to contact your legislator to express your opposition. ADDITIONALLY: be at the Capitol on Monday 9/28 to testify in opposition to OGB awarding this contract to CVS Caremark.

Here’s why:


  • MedImpact is willing to exercise the second of two option periods and renegotiate the terms of the contract for 2021.


  • This is a manufactured emergency – no exceptional circumstances apply. The Louisiana Procurement Code allows emergency procurements “when there exists an imminent threat to the public health, welfare, safety, or public property.” La. R.S. 39:1598(A).

  • Legislative oversight is extremely important under these circumstances. Despite the alleged “emergency,” OGB negotiated a bad contract that contains no definitions, guarantees, or protections for Louisiana communities or citizens.

  • If OGB is allowed to declare an emergency at any time and without meeting the requirements of Louisiana laws or regulations, Louisiana communities and patients will be irreparably damaged.

  • OGB ensures Louisiana communities and citizens are protected by the Contract language, however, the language is woefully insufficient to protect anyone. Definitions in the Contract are effectively non-existent.

  • In an answer provided to OGB, CVS Caremark states 40% of its proposed network is made up of independent community pharmacies. However, no independent community pharmacy was allowed to advise OGB or comment on the proposed Contract.

  • Unlike CVS Caremark contracts with other states, OGB has negotiated zero protections and CVS Caremark has no responsibilities toward independent community pharmacies.


  • The Louisiana Independent Pharmacies Association (LIPA) and its members requested OGB add the relevant provisions of Acts 2019, No. 124, including a fiduciary duty, into the Contract by language and not by reference. This request by LIPA has not been answered and CVS Caremark currently owes no fiduciary duty to Louisiana or its citizens.


  • This flawed Contract will allow CVS Caremark to engage in self-dealing, disregard the insurance, pharmacy, and public health and safety laws and regulations.

  • To this day, CVS Caremark refuses to pay sales taxes and a $0.10 Provider Fee on many prescription drugs dispensed in Louisiana. Local governments need those taxes and the Department of Health uses those fees to draw down federal funds, of which CVS Caremark is a substantial beneficiary.


Please contact the members of the Joint Legislative Committee on the Budget today.


JOINT LEGISLATIVE COMMITTEE ON THE BUDGET

Click on Member's name for contact information including phone number and email.

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