By Catherine Dunn

The Florida attorney general's office said on Tuesday that it's probing the relationship between CVS Health's retail pharmacies and its pharmacy benefit manager, or PBM, business. The announcement adds another pressure point to an industry under bipartisan scrutiny across states and in Washington, including calls to break up ownership of PBMs and pharmacies by the same company.

PBMs help decide which drugs are covered by an insurance plan, in addition to managing the pharmacy networks where consumers fill prescriptions. The industry says it plays an important role in managing healthcare costs for clients, such as large employers that sponsor health plans, and a plan's members.

Florida AG James Uthmeier said he is examining whether CVS's PBM steers patients to its own pharmacies and pays its pharmacies higher reimbursements than it pays to independent pharmacies. Those practices allegedly contribute to pharmacy closures, "leaving families and seniors with fewer options and higher costs," the AG's office said.

"Here you have a situation where it appears one company has gotten so big that they are controlling market power in a way that might manipulate pricing at the cost of consumers," Uthmeier said during a press conference.

As part of the probe, the state attorney general issued a civil investigative demand to CVS Health with a July 28 deadline. The subpoena requests documents and sworn testimony covering pharmacy contracts, reimbursement rates, "differential treatment of own versus independent stores," and the company's expansion plans, according to a press release. CVS operates about 800 pharmacies in Florida.

A spokesman for CVS said the company "will work with the Florida Attorney General to address any concerns."

"Independent pharmacies remain vital to CVS Caremark's networks, and we collaborate with them to ensure all members have convenient access to the care they need," spokesman David Whitrap told Barron's. "We welcome the opportunity to work with regulators and policymakers to set the record straight around these market dynamics, and more importantly, to improve consumer experience and affordability."

Write to Catherine Dunn at catherine.dunn@dowjones.com

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June 23, 2026 17:33 ET (21:33 GMT)

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