Frier Levitt’s Successful Efforts to Overturn Caremark’s Bulk Purchase Restriction

As Frier Levitt reported here, earlier this year, CVS Caremark (“Caremark”) implemented a notification requirement for pharmacies making bulk purchases.  Pharmacies that were looking to make bulk purchases that exceeded a “30 day supply” were required to request permission from Caremark in writing to make such purchases. Not only did such a requirement fail to recognize pharmacies’ needs to have a perpetual inventory, it would have placed an administrative burden and logistical challenge on internal pharmacies’ policies and operations, subjecting them to large recovery efforts and potential termination.  Recognizing this issue, Frier Levitt engaged in a campaign on behalf of pharmacies to prepare a comprehensive action plan to help overcome the burdensome restriction.

In addition to raising the unreasonableness of this requirement to Caremark’s attention directly, Frier Levitt attorneys met with the Federal Trade Commission (“FTC”) to address the burdens imposed on independent pharmacies and wholesalers within the Caremark network. As a result of Frier Levitt’s meeting with the FTC and further collaborative efforts, Caremark has decided to reverse its decision to implement bulk purchase limits and has indicated it will modify the vague language in its Provider Manual to reflect more specific details regarding the amendment. Pharmacies should be on the lookout for communications from Caremark regarding this update, as it will be effective immediately, along with a host of other amendments that are expected to impact pharmacy operations.

Frier Levitt is proud to have played an integral role in Caremark’s decision to reverse such a restrictive measure in the best interests of independent pharmacies, wholesalers, and the industry at large. Contact us to speak with an attorney for more information about how the bulk purchase restriction and other recent amendments to Caremark’s Provider Manual may impact your pharmacy business.