Caremark and Zinc Health Services; Analysis of Proposed Agreement Containing Consent Order To Aid Public Comment

d to the list price of the drug, such as patients in their deductible phase and those with coinsurance. While patients pay inflated prices, Caremark is enriched by the rebates tied to each filled prescription. The Complaint alleges unfair methods of competition and unfair acts or practices under section 5 of the FTC Act. III. PBM Investigation In fall 2023, the FTC opened an investigation to determine whether certain business practices of the three largest PBMs, including Caremark, violate the laws enforced by the FTC by unlawfully harming competition for pharmacy services. Prior to and since opening the investigation, Staff has received comments from pharmacies, patients, and other market participants about Caremark's business practices. The comments contend, among other allegations, that Caremark uses its dominance to impose oppressive terms on unaffiliated pharmacies who need to join the PBMs' pharmacy networks, including reimbursement rates that make it uneconomical for unaffiliated pharmacies to dispense medications. In December 2023, the FTC issued a civil investigative demand to Caremark's parent company, CVS Health Corporation (``CVS Health''), to investigate these concerns. That investigation has been ongoing. IV. Proposed Order The Proposed Order, which lasts ten years from the Implementation Date, contains the following provisions: Section I generally requires Carema