CVS Caremark Settles With FTC, Agrees to Apply TrumpRx Payments to Deductibles

CVS Health’s Caremark division has reached a settlement with the U.S. Federal Trade Commission (FTC), agreeing to significant changes in how it handles drug discounts and patient costs. The agreement requires the pharmacy benefit manager (PBM) to count consumer purchases made through the TrumpRx.gov website toward their health plan deductibles and to curb the use of certain after-market rebates, an FTC spokesperson said Tuesday.

Details of the Agreement

The settlement introduces two key changes to Caremark's operations aimed at lowering consumer drug costs:

• TrumpRx Integration: Once new regulations are implemented, CVS Caremark will be required to apply a patient's cash payments for drugs purchased via the TrumpRx.gov discount website toward their annual insurance deductible. This addresses a major limitation of the platform, which previously operated outside of insurance coverage.
• Rebate Model Flexibility: The company must also provide its clients, such as employers and health plans, with an option to opt out of rebate payment models. These rebates, paid by drugmakers to PBMs after a drug is dispensed, have been criticized for contributing to higher list prices.

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Regulatory Context and Market Impact

FTC Chairman Andrew Ferguson stated that the settlement is expected to generate billions of dollars in savings on drug prices for consumers. "The FTC under President Trump won’t stand for anticompetitive behavior that drives up prices for American consumers," Ferguson said in a statement.

The agreement marks another significant regulatory action targeting PBM practices, following a similar settlement between the FTC and Cigna earlier this year. The TrumpRx.gov website, launched in February, was designed to provide consumers with direct access to discounted prices on hundreds of drugs, including popular weight-loss medications from Eli Lilly and Novo Nordisk. By integrating these cash-pay purchases with insurance deductibles, the settlement could significantly increase the platform's value and adoption among insured Americans.