Highlights

• CVS calls Louisiana's three lawsuits "baseless and inaccurate claims" and vows to "vigorously defend" against them
• The company maintains that its text messaging to customers was "consistent with the law" and necessary to inform patients about potential pharmacy disruptions
• CVS claims it operates the "lowest cost retail pharmacy" in Louisiana, with average reimbursement rates $8 lower than independent pharmacies
• The pharmacy giant argues removing CVS from Louisiana would increase state costs by more than $4.6 million annually
• CVS defends its "integrated model" as delivering better access and affordability while serving nearly 1 million Louisiana patients

CVS Fires Back at Louisiana Lawsuits, Claims State's Legal Action Would Increase Costs for Patients

Pharmacy giant CVS Health Corp. is mounting an aggressive defense against Louisiana's three lawsuits, arguing the state's legal action would actually drive up prescription drug costs and reduce patient access to care.

BATON ROUGE, La. (KPEL News) — CVS Health Corp. is pushing back hard against Louisiana's three-pronged legal assault, releasing a comprehensive response that challenges virtually every allegation made by Attorney General Liz Murrill while positioning the company as a defender of affordable healthcare for Louisiana patients.

The pharmacy giant's response, issued following the June 24 lawsuit announcements, represents a full-throated defense of both its controversial text messaging campaign and its broader business practices that state officials claim are driving independent pharmacies out of business.

CVS Defends Text Message Campaign

Addressing the most visible controversy that sparked the legal action, CVS maintains that its mass text messaging to Louisiana customers was both legal and necessary. "Our communication with CVS customers, patients, and members of the community was consistent with the law," the company stated in its response.

The company specifically addressed concerns about using state employee health data, clarifying that "we did not use any Office of Group Benefits (OGB) member information, and we agree with Governor Landry and Attorney General Murrill that OGB data should not be used for this type of outreach."

CVS justified the controversial June 11 text messages by framing them as customer service rather than political lobbying. "We believe it was important for people to know about a potential disruption to where they get their medicine, whether that is at one of our 119 retail pharmacies in Louisiana, through home delivery, a long-term care pharmacy, or at a specialty pharmacy," the company explained.

The response also claimed customer support for CVS's position, stating that "our customers were clear: they want access to CVS Pharmacy, and our colleagues were clear: they want to serve their friends, families, and neighbors in Louisiana."

Challenging the Independent Pharmacy Claims

CVS mounted a vigorous defense against allegations that it systematically underpays independent pharmacies, calling the claims "without merit" and promising to "defend ourselves vigorously."

The company turned the cost argument on its head, claiming it actually provides lower-cost services than independent pharmacies. "CVS Pharmacy continues to be the lowest cost retail pharmacy in the state contract with an average reimbursement rate $141/Rx vs Independents of $149/Rx," CVS stated in its response.

This $8 per prescription difference, according to CVS, translates into significant savings for Louisiana. The company claims that "removing CVS Pharmacy from Louisiana will increase cost to the state by more than $4.6 million" annually.

CVS also challenged the state's vision of market competition, arguing that "such a market would not and should not mandate pharmacy higher reimbursement rates to less efficient pharmacies. The result would be an increase in the number of more expensive independent pharmacies and higher costs for consumers."

Defending the Integrated Business Model

On the vertical integration allegations that form the third lawsuit, CVS offered a spirited defense of what it calls its "integrated model." The company argued this structure "delivers value to members, patients, customers, and clients by providing better access, affordability, and advocacy for those we serve."

"By combining health care delivery, pharmacy, health care benefits, and pharmacy benefit management, we make it easier for people to have what they want the most: a connected care experience," CVS explained in its response.

The company also addressed specific allegations about foreign business practices, stating that "our group purchasing organization (GPO) is based in the United States. It is NOT foreign based," apparently responding to claims about overseas operations that may have been part of the state's legal arguments.

CVS Touts Louisiana Performance Record

In defending its Louisiana operations, CVS highlighted several key metrics designed to demonstrate its value to the state. The company noted that "CVS Caremark successfully won a competitive OGB PBM RFP with a perfect score and 5% better than the 2nd placed bidder."

CVS also emphasized its local workforce and community impact, stating that "our pharmacists, pharmacy technicians and front store teams live and work in Louisiana; they too are an important part of their communities and are focused on caring for the nearly 1M patients and customers they serve."

This nearly one million patient figure represents a significant portion of Louisiana's 4.6 million residents, underscoring CVS's substantial market presence in the state.

The Broader Strategic Message

Throughout its response, CVS consistently positioned itself as the defender of affordable healthcare against what it characterizes as misguided government intervention. "Our focus is and remains serving the people of Louisiana: lowering drug costs, providing access to care, and helping improve health," the company stated.

The response concluded with an olive branch to state officials, saying CVS looks forward to "working productively with policymakers to continue to make prescription drugs more affordable and accessible and to promote the value of community pharmacy."

Legal and Political Implications

CVS's aggressive response sets up what promises to be a protracted legal battle with significant implications for Louisiana's pharmaceutical market. The company's claim that it provides lower-cost services directly contradicts the state's allegations about price manipulation and market abuse.

In an interview with KPEL News, Attorney General Murrill had predicted CVS would "fight us to the ends of the earth to try and protect the confidentiality of all their documents so that nobody can see how they're doing this." CVS's comprehensive response suggests the company intends to fight the case in the court of public opinion as well as in the courtroom.

READ MORE: Louisiana AG Explains Three CVS Lawsuits Over Text Messages

The competing narratives presented by the state and CVS reflect a fundamental disagreement about how Louisiana's pharmaceutical market should operate. While state officials argue CVS's business model drives up costs and eliminates competition, CVS contends its integrated approach delivers better value and lower costs for patients.

What's Next for CVS, Louisiana

CVS's response signals the company will challenge not just the legal merits of Louisiana's case, but also the underlying policy assumptions driving the state's regulatory approach. The $4.6 million cost increase claim, if accurate, could provide ammunition for CVS in both legal proceedings and any future legislative battles.

Governor Jeff Landry has threatened to call a special legislative session to address prescription drug pricing issues after House Bill 358 failed to pass. CVS's response suggests the company will actively engage in any such legislative fight, armed with data about its Louisiana operations and cost comparisons.

The legal battle also reflects broader national tensions over pharmacy benefit manager regulation, with CVS facing similar challenges in Arkansas and other states pursuing PBM reform.