CVS Health is terminating existing 340B contract pharmacy and administrative services agreements with covered entities and plans to replace them with new agreements beginning January 1, 2027. The changes apply to agreements executed before July 1 and extend across applicable CVS Health entities, including 340B third-party administrator Wellpartner, CVS contract pharmacies, pharmacy benefit manager Caremark, and CVS specialty pharmacies. Existing agreements will terminate effective December 31, while covered entities must execute the new agreements by December 1 for them to take effect January 1.
The contract changes come as CVS faces five ongoing federal lawsuits brought by 340B hospitals alleging that CVS and its subsidiaries improperly reduced contract pharmacy reimbursement owed to the hospitals. Frier Levitt represents the hospitals in those lawsuits.
Frier Levitt attorney Geordan Ferguson told 340B Report that the timing of the new agreements may be connected to the pending litigation and urged covered entities to carefully evaluate the new terms before agreeing to them.
“While we may never know for certain, we believe this change is related to our pending lawsuits,” Ferguson said. “We are encouraging providers to review the terms closely and reach out to discuss their options.”
For 340B covered entities working with CVS, the transition creates an important opportunity to review how the new contractual terms may affect their contract pharmacy arrangements before the December 1 execution deadline.
