CVS Caremark Settles FTC Antitrust Suit to Lower Drug Costs

The U.S. Federal Trade Commission reached a global settlement with CVS Caremark to resolve antitrust litigation and investigations into pharmacy benefit management practices. The deal stems from a 2024 lawsuit alleging that Caremark and other managers artificially inflated insulin prices through anticompetitive rebating.

Under the agreement, Caremark will cap out-of-pocket insulin costs at $25 per month and shift to a fee-based compensation structure. The company will now ensure that prescription purchases made via the TrumpRx.gov website count toward health plan deductibles and allow clients to opt out of rebate payment models. To protect small pharmacies, CVS will implement reimbursement based on the actual cost of drugs plus a fee.

FTC Chairman Andrew Ferguson stated that the agreement will result in billions of dollars in savings. The commission estimates the deal will generate up to $8.5 billion in consumer savings over ten years, with an additional $4.5 billion coming from point-of-sale rebates. The settlement does not include monetary penalties.

CVS Caremark President Ed DeVaney said the agreement reinforces affordability for patients. The company noted that the settlement eliminates the need for ongoing litigation and allows it to focus on increasing transparency and lowering costs for employers and consumers.