Widespread texts from CVS announcing closures cause panic in state
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Louisiana residents were left confused — and a little panicked — after CVS sent out ominous texts claiming the pharmacy giant may shut down every store in the state. The messages, sent directly to customers' phones this morning, warned that 'your medication cost may go up and your pharmacist could lose their job' — sparking a wave of concern and confusion.
The alert was linked to House Bill 358, a new piece of legislation targeting Pharmacy Benefit Managers (PBMs) — the behind-the-scenes middlemen that help set drug prices and reimbursement rates. CVS, which owns one of the nation's largest PBMs, Caremark, says the bill could force it to pull out of Louisiana entirely.
'If you choose to be a PBM, you can still be a PBM,' explained State Rep. Dustin Miller (pictured), who sponsored the bill. 'But you cannot be a PBM and a pharmacy.' Lawmakers argue the measure is designed to stop big chains from steering customers toward their own stores — a move they say hurts independent pharmacies and inflates prices.
The text blast from CVS — which has revamped management after a sales slump — didn't go over well with many legislators. 'Scare tactics,' said Rep. Dixon McMakin (pictured), who slammed the company's messaging as misleading. Others, like Rep. Edmond Jordan, tried to calm nerves: 'Independent pharmacies aren't going to close tomorrow. In fact, they're doing better than they have in years. If CVS decides to leave, hopefully, we have people there to make up that difference.'
PBMs are used by pharmacies, insurance companies, and drug manufacturers when setting drug prices. 'They set the rates and the reimbursement for the pharmacies; we are just telling them if that is your core responsibility, you can keep that as your core responsibility,' Miller said. 'We don't want you to also go open a pharmacy and steer people to you and compete against other pharmacies.'
The text message fiasco comes after Arkansas signed Act 624 into a law banning PBMs from owning or operating pharmacies starting next year. Reddit users were more blunt. 'CVS has one of the biggest PBM's and they don't want to give up all the price fixing they do. Let them leave. They will come crawling back,' a customer claimed on a post. 'Just got it myself as well at the email. Do not respond. If they leave, they leave of their own volition because they don't truly care,' another person wrote.
The bill, which has passed both the House and Senate, now awaits the signature of Governor Jeff Landry, who is expected to sign it into law. That is expected to be a formality. The text message fiasco comes after Arkansas signed Act 624 into a law banning PBMs from owning or operating pharmacies starting next year. CVS has been having financial problems over the last few years.
The chain announced back in 2023 that it would close 900 stores by the end of 2024. The pharmacy chain revealed the closures were part of a 'retail footprint strategy' created in order to continue meeting customer needs. CVS is planning to shutter 270 stores this year, but will continue operating over 9,000 locations nationwide.
It experienced a 7% increase in first quarter revenue compared to 2024 and has not filed for Chapter 11 bankruptcy protection. However, fellow pharmaceutical chain Rite Aid has been struggling to stay afloat after filing for bankruptcy in 2023.
It's set to close 111 stores across the US this year, and is in the process of selling its pharmacy assets following its second bankruptcy filing DailyMail.com has reached out to CVS for comment about the text messages.
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