D.C. Councilmember David Catania, head of the Council's Committee on Health, heard testimony today on CVS Caremark's corporate practices and how they affect residents of the District of Columbia.Speaking about CVS Caremark's pharmacy benefits management - a service which connects retail pharmacies and private insurance companies - Change to Win Executive Director Chris Chafe and Health Care Initiatives Policy Director Jasmin Weaver discussed their alarm at several of CVS Caremark's practices.
According to their testimony, CVS Caremark has repeatedly shared private patient data with third parties, often as a paid service to pharmaceutical corporations. In addition, CVS Caremark has been accused in the past of switching patients' prescriptions to non-prescribed alternatives in order to increase revenue - despite the possible impact this may have on insurance company costs and patient health.
Councilmember Catania shared Chafe and Weaver's concerns, particularly in light of CVS's overwhelming presence in D.C. With 52 stores within the city limits, CVS commands an astonishing 58% of the retail pharmacy market. Rite Aid, by comparison, has only seven stores in the District, and Walgreens has only one.
Councilmember Catania made clear that he intends to investigate CVS Caremark's actions, and expressed specific concerns about possible violation of D.C. prescription dispensation laws, anti-monopoly laws and patient privacy acts. The session was recessed - but not adjourned - pending further inquiry.