RALEIGH —After months of negotiation, The Department of State Treasurer (DST), along with the State Health Plan (Plan), has reached an untenable impasse with CVS Caremark (Caremark) which refuses to honor its current contract with the State Health Plan. The negotiations with Caremark have been unsuccessful which potentially endangers the financial well-being of the Plan and its members who serve the state of North Carolina every day.

This conclusion comes after many attempts to rectify contractual obligations, including:

Caremark’s failure to provide rebates to the Plan in the amount of tens of millions of dollars since 2023

Caremark’s repeated demands would rewrite the agreed upon contract with the Plan to increase its profits at the direct expense of teachers, state employees, retiree

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