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FTC and CVS Caremark Settle, Forcing Rebate Reforms and TrumpRx Deductible Counting

Regulators say the settlement will cut patient costs by forcing point-of-sale rebate pass-through that the FTC says will unlock multibillion-dollar savings.

U.S. President Donald Trump arrives to an event to unveil the TrumpRx drug discount site, in the South Court Auditorium on the White House campus, in Washington, D.C., U.S., February 5, 2026. REUTERS/Al Drago

Overview

  • The FTC finalized a consent settlement with CVS Health’s Caremark that requires point-of-sale rebate pass-through, delinks manufacturer fees from drug list prices, gives plan sponsors an opt-out from rebate guarantees, and prohibits Caremark from blocking pharmacies that use hub services, the agency said July 14.
  • The agency projects the changes could secure up to $8.5 billion in consumer savings over 10 years and unlock up to $4.5 billion in additional patient savings through counter or point-of-sale rebates.
  • The FTC’s complaint alleged PBM rebate arrangements created incentives to raise list prices and prefer higher-rebate drugs, which the agency said inflated insulin prices and limited access to lower-cost options.
  • For patients this means more of the rebate benefit may hit the checkout, lowering out-of-pocket costs immediately, and Caremark must count TrumpRx cash payments toward plan deductibles once federal rules and plan integration allow that treatment.
  • The action follows a February settlement with Express Scripts and a paused adjudication for Optum Rx, and signals an ongoing FTC campaign under Chair Andrew Ferguson to remake how PBMs are paid and how rebates affect drug prices.