Here are four recent updates from CVS Health:
1. CVS Health subsidiary Omnicare has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas. The filing follows both broader financial difficulties and a July ruling in the U.S. District Court for the Southern District of New York, where a federal judge ordered the company to pay $948.8 million in damages and penalties over allegations it submitted fraudulent claims to Medicare and Medicaid.
2. CVS is reshuffling its care delivery leadership. Paymon Farazi, president of Signify Health, is stepping down. He will be succeeded by Marcus Lanznar, previously senior vice president of product at Signify. Additionally, Jon Thiboutot, PharmD, has been appointed president of retail health for CVS Health. A pharmacist by training, Dr. Thiboutot has played a key role in advancing CVS’ MinuteClinic services.
3. Two New York residents, Dennis Larkin of Mahopac and Danielle Gosline of Auburn, filed a lawsuit against CVS after its pharmacy benefit manager, Caremark, denied coverage for the weight loss drug Zepbound in favor of Wegovy. The plaintiffs argue the denials were “arbitrary and capricious” and that Zepbound was medically necessary. The lawsuit, filed Sept. 3, alleges CVS Caremark violated the Employee Retirement Income Security Act (ERISA).
4. CVS will begin requiring prescriptions for COVID-19 vaccines in certain states to comply with CDC guidelines and state regulations. The company told CBS News it cannot administer the vaccine even with a prescription in Massachusetts, Nevada, and New Mexico due to state laws. CVS can provide the vaccine without a prescription in 34 states, while in the remaining 16, prescriptions may be required depending on patient age.
