Opinion ID: 4511614
Heading Depth: 3
Heading Rank: 1

Heading: CVS Caremark's Business

Text: CVS operates CVS Caremark, one of the country's largest pharmacy benefit managers (PBMs). PBMs sell prescriptionmanagement services to entities providing prescription-drug coverage to their members. These entities -- known as payers -- include employers, insurance companies, and unions. PBMs negotiate on behalf of payers with pharmacies to secure reimbursement rates for prescription drugs. They also establish pharmacy networks for payers, premised on each payer's individual needs and preferences; furnish an array of administrative services (such as claims adjudication and eligibility determinations); and procure bulk discounts and rebates directly from pharmaceutical manufacturers. For its part, CVS Caremark offers its own mailorder pharmacy services to certain payers as clients. CVS operates other healthcare-related subsidiaries in addition to CVS Caremark, including a sprawling chain of retail pharmacies. CVS has erected a firewall between CVS Caremark and its retail pharmacy subsidiary. This firewall not only prevents 1 [W]e credit the undisputed facts presented below and adopt the district court's findings as to controverted matters to the extent they are supported by the record and not clearly erroneous. United Elec., Radio & Mach. Workers of Am. v. 163 Pleasant St. Corp., 960 F.2d 1080, 1083 (1st Cir. 1992). - 3 - CVS Caremark's employees from accessing the prices that CVS's retail pharmacies negotiate with other PBMs but also prevents employees of CVS's retail pharmacies from accessing the prices that CVS Caremark negotiates with other retail pharmacies.