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By Suzanne Blake
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More than $2.1 million from a settlement with CVS Caremark will be distributed to hundreds of pharmacies in Oklahoma, according to state officials.
Oklahoma Attorney General Gentner Drummond and Insurance Commissioner Glen Mulready said the money will go to more than 900 eligible pharmacies following a years-long dispute over fees that CVS Caremark allegedly improperly charged pharmacies for processing prescription claims.
“Pharmacies are essential to the health and well-being of Oklahoma communities, particularly in rural areas,” Drummond said in a statement. “My office is committed to getting these funds to the pharmacies that were improperly charged, and we will continue holding PBMs accountable when they violate Oklahoma law.”
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Unlike many high-profile settlements, however, this payout is not open to CVS customers.
The Attorney General's Office will instead contact eligible pharmacies directly using information supplied by the Oklahoma State Board of Pharmacy and help them complete the paperwork necessary to receive payment.
The $2.1 million comes from fines obtained through a settlement originally reached between the Oklahoma Insurance Department and CVS Caremark in 2022.
Why It Matters
Although customers will not receive checks from this settlement, the dispute involves the increasingly scrutinized role of pharmacy benefit managers (PBMs) in determining how pharmacies are paid for prescription drugs.
CVS Caremark operates as a PBM, administering pharmacy benefits and payments on behalf of health plans. Oklahoma alleged the company improperly charged pharmacies transaction fees between September 2020 and October 2021.
This isn't the state's first settlement with CVS Caremark. The Attorney General's Office says this is the third settlement involving the company, with the combined settlements returning more than $7 million to Oklahoma pharmacies.
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What Was the CVS Settlement About?
The Oklahoma Insurance Department reached the settlement with CVS Caremark in January 2022 after alleging that the PBM improperly assessed transaction fees against pharmacies in violation of state law.
CVS Caremark did not admit liability under the agreement.
“What concerns me more is what happens behind the pharmacy counter. A customer pays their usual copay and walks out with their medication. Everything seems fine. But the pharmacy has its own costs, including what it pays for the drug and what the insurance middleman takes out,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
“Those costs add up. And for a small independent pharmacy, there's only so much room to absorb them.”
Who Is Eligible for a CVS Settlement Payment?
More than 900 pharmacies in Oklahoma are eligible for distributions.
However, individual CVS customers are not able to submit claims.
Instead, the Oklahoma Attorney General's Office will oversee the process, and each affected pharmacy will be contacted using information obtained from the Oklahoma State Board of Pharmacy. The Attorney General's Office will then work with pharmacies to complete the required paperwork and earn payment.
“Unlike most settlements that go directly to customers and rely on those affected applying for their financial portion, this settlement is more for pharmacies in Oklahoma than those who buy from them,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “Oklahoma's Attorney General's Office will be the ones in charge of ensuring that funds received through the settlement will be distributed to the affected pharmacies.”
Has CVS Caremark Faced Other Settlements in Oklahoma?
State officials say this is the third settlement involving CVS Caremark and that the settlements collectively are returning more than $7 million to Oklahoma pharmacies.
A separate agreement announced in December 2025 was worth more than $5 million and dealt with allegations that CVS Caremark underpaid pharmacies for dispensing prescription drugs.
“Customers may never see these charges on a receipt,” Ryan said. “What they will notice is when their neighborhood pharmacy stops accepting their insurance, or closes altogether.”
What Happens Next
The Oklahoma Attorney General's Office will now oversee distribution of the more than $2.1 million back to the affected pharmacies.
However, some of the damage from the company’s alleged fees may already be done.
“A settlement check can help recover some of that money. But it doesn't guarantee the pharmacy can afford to keep filling prescriptions under its future insurance contracts,” Ryan said.
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.
Contact Newsweek editors on this story: Gray R. Thomas
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