Press Release: CVS Caremark Negotiations with NC State Treasurer Head Toward Possible Legal Dispute
RALEIGH, NC — Contract negotiations between CVS Caremark and North Carolina State Treasurer Brad Briner’s office, alongside the State Health Plan (SHP), have stalled, potentially leading to a court battle, increased premiums for state employees, or insolvency for the Plan.
Since assuming the role in 2017, CVS Caremark has managed the SHP’s pharmacy benefits but has reportedly failed to meet contractual obligations, including non-payment of tens of millions in rebates since 2023. Caremark’s recent demands threaten to alter the established contract, prioritizing corporate profit over the financial interests of teachers, retirees, and taxpayers.
The SHP serves over 750,000 beneficiaries, and Briner warned that if the company fails to address these issues, active members may face annual premium increases starting at $100 in 2026. Furthermore, incorrect rebate calculations could escalate premiums by over $500 for the contract’s duration. "Many of Caremark’s unilateral actions have aimed to boost its profits at the Plan’s expense," Boniti stated.
Despite Caremark’s assertion that it is committed to honoring its contract, officials insist its actions contradict this promise. Recently, they made benefit changes to tackle a looming $507 million deficit for 2026.
SHP officials maintain that they are prepared to pursue legal action if Caremark does not adhere to its contractual obligations. However, members will retain pharmacy benefits, regardless of the dispute’s outcome.
Both the State Employees Association of North Carolina and Treasurer Briner stress the necessity of transparency and accountability in these negotiations, urging CVS Caremark to comply satisfactorily to avoid additional burdens on state employees.
The SHP Board will next meet on August 15 to determine the premiums for 2026.
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