CVS business practices probed by 24 states

CVS Caremark Corp., the largest U.S. provider of prescription drugs, said its business practices are under investigation by 24 states.

The probe is similar to one that was started by the U.S. Federal Trade Commission last year, CVS said in a filing today. The District of Columbia and county of Los Angeles are also participating in the investigation, according to the filing. CVS said it's cooperating with the investigations.

Locally, CVS has operations in Northbrook, Mount Prospect, Bannockburn and Lincolnshire.

A multistate task force is reviewing the relationship and practices of CVS and Caremark following their 2007 merger, Connecticut Attorney General Richard Blumenthal said in March. The offices of the attorneys general of Illinois and Florida also confirmed in March that they were taking part in the investigation.

CVS also said it received a subpoena from the Office of Inspector General within the U.S. Department of Health and Human Services for information on incentives for customers to transfer their prescriptions to CVS's pharmacies. Offers included gift cards, cash, non-prescription goods and coupons, according to the filing with the Securities and Exchange Commission.

That subpoena is related to an investigation concerning "possible false or otherwise improper" claims for Medicare and Medicaid payments, the chain said. CVS announced the Health and Human Services subpoena earlier this year. The department has requested claims data for customers eligible for both private and federal insurance coverage as part of the investigation.

The state of Texas filed a suit against CVS in April 2009 concerning patients eligible for Medicaid and private insurance.

CVS lost 60 cents, or 1.6 percent, to $36.48 at 4:15 p.m. in New York Stock Exchange composite trading before the filing. The shares have climbed 13 percent this year.