Caremark agrees to $38.5 million settlement

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Pharmacy benefits manager Caremark has agreed to pay $38.5 million settlement to 28 states and Washington, D.C., that claimed it was deceptive when it encouraged patients to switch prescription drugs under the guise of saving money.

The states, including Vermont, say Caremark kept rebates and discounts that it should have passed on to patients and employers.

The settlement requires Caremark to adopt measures to protect patients when it encourages them to switch drugs, and disclose more information about the effect of such a switch.

The parent company of Caremark, Woonsocket, R.I.-based CVS Caremark Corp., said it entered into the settlement to confirm its commitment to compliance with consumer-protection laws.

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