So now Louisiana passed a law banning PBM's from owning a pharmacy in their state. This is the second state to pass such a law, Arkansas being the first. The new Louisiana law now heads to the governor's desk where they said they agree with the law. If more states pass laws like this what will CVS do?
6 replies (most recent on top)
They deserve it monopolizing the market like they did forcing members to use their pharmacies and treating their employees like white collar slavery
The Louisiana AG just raised the stakes, issuing a cease and desist oder to CVS, for the very obvious scare tactic mass text message they sent out. This is like a chess match. Louisiana is not backing down, and CVS is putting up a good fight. Typical CVS trying to sweep there dirty laundry under the rug.
@ak+1jxn1hyg5 Interesting. CVS staves off elimination and lives to fight another day. Will be interesting to see if Louisiana governor has the horses to pull off a miracle comeback victory.
@a9+1jxn1hyg5 Who would buy the retail business? I could see a few stores here and there, but if that happened the majority would probably close. Look at Rite Aid, of all the assets purchased out of bankruptcy, only a few stores were actually purchased to operate as a store.
No, Louisiana Senate ki-led the bill due to CVS Health's goons' successful lobbying:
https://www.nola.com/news/politics/legislature/louisiana-legislature-bucks-cvs-passes-pbm-bill/article_9b860fd0-ef69-47d1-bb82-7cf002560efb.html
The governor wants to call a special session to vote again on it. So we shall see.
If it passes there, then the Board has no choice but to consider a spin off of the retail business. This same proposed legislation is being considered in several other states and they are all looking at Louisiana to see if it's just a one-off with Arkansas or truly viable.
CVS's legal argument against Arkansas (who did it first) has no merit, which is why they are desperately kissing Trump's ring right now to have him squash the bills and/or influence judges to side with us.
They will sell the retail business and become pure insurance company if it continues.