Skip to Main Content
Services Talent Knowledge
Site Search
Menu

Blog Post

December 10, 2019

CVS Caremark Targets Pharmacies With New "Aberrant Quantitates and Volume" Contract Amendment

On January 1, 2020, CVS Caremark will begin enforcing a new contractual provision designed to ensure its independent network pharmacies do not dispense more than 25 percent of products that are on Caremark’s “Aberrant Product List” by claims or dollars—as determined solely by Caremark.

The restrictions are intended to curb “dispensing aberrant quantities” or “high volumes” within a therapeutic category. The medications contained on the list are extensive and include numerous common medications. Some of the medications appear to be on the list solely because of their high profit margin for the pharmacy. To enforce the new provision, among other tactics, Caremark will perform monthly monitoring of its network pharmacies. If a pharmacy breaches the “aberrant product” threshold, it will receive a cease-and-desist notice. Additional violations by the pharmacy will subject it to network termination and chargebacks on claims.

The contractual amendment may have a severe impact on your pharmacy business, including your relationships with patients and providers. The Barclay Damon team has successfully represented pharmacies that have had their dispensing practices come under siege based on arbitrary and unilateral restrictions imposed by PBMs that are unrelated to patient care.

If you have any questions regarding the content of this blog post, please contact Linda Clark, health care controversies team leader, at lclark@barclaydamon.com; Brad Gallagher, counsel, at bgallagher@barclaydamon.com; Brenda Baddam, associate, at bbaddam@barclaydamon.com; or another member of the firm’s health care controversies team.

Featured Media

Alerts

Proposed Legislation Unlocks New Financing Options for NYS Affordable Housing Developers

Alerts

NYS Legislators Advance Patient Access to Pharmacy Act, Establishing New PBM Reimbursement Standards

Alerts

Prior Authorization Compliance: What NYS Pharmacies Need to Know to Avoid Medicaid, PBM, and Payor Enforcement Risks

Alerts

NYS Enacts Sweeping Auto Insurance Reforms Impacting Motor Vehicle Accident Claims

Alerts

Effective Immediately: NYS 2027 Budget Bill Amends State Climate Law

Alerts

No Need for Rental Companies to Provide Primary Insurance to Statutory Minimum, Says New York State's Highest Court