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Louisiana settles two lawsuits with pharmacy giant; independent druggists react

10 hours 27 minutes 49 seconds ago Monday, December 15 2025 Dec 15, 2025 December 15, 2025 5:39 PM December 15, 2025 in News
Source: WBRZ

BATON ROUGE — A long-running legal dispute between the state and CVS, a major pharmacy chain, over the role of pharmacy benefit managers in Louisiana may soon be resolved with settlements.

The conflict accelerated when CVS sent messages to customers warning about state legislation that would ban pharmacy benefit managers from owning retail pharmacies. Eventually, the state filed three lawsuits in June.

Pharmacy benefit managers are middlemen among pharmaceutical companies, pharmacies and insurance companies. They're intended to negotiate prices for manufacturers and pharmacies, but critics say that raises costs for mom-and-pop pharmacies and the consumer.

Pharmacist T.J. Woodard, at Prescriptions to Geaux, says independent pharmacies provide a special service.

"Here, our patients are our family, our friends, our neighbours," Woodard said. "We're the ones who meet them on Sunday afternoon to get their medication when they have a sick child at home. We stay open late, and even if there's a freeze, we'll be here. We're going to be open."

PBMs work between different organizations, negotiating drug prices, and in some cases, PBMs also run drug store chains like CVS.

Woodard says it can make it difficult for patients who rely on small business pharmacies to fill their prescriptions.

Randal Johnson with the Louisiana Independent Pharmacy Association says it's important that patients have access to  health care.

"The pharmacists are our most accessible health care provider," Johnson said. "You can walk right in, speak to one and ask about your health care condition."

In June, Louisiana officials accused CVS Health of adopting policies that negatively impacted locally owned pharmacies. The state also accused CVS of violating its contract with the state.

Louisiana CVS customers received text messages and fliers rallying against legislation to increase transparency and protect customers. The company said its policies were intended to save its customers money.

WBRZ has requested documents related to the settlements from the Attorney General's office. However, at this time, the terms of the settlement have not been disclosed.

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