FOR IMMEDIATE RELEASE:
January 9, 2003

FOR FURTHER INFORMATION CONTACT:
Genene Morris (973)504-6327

NEWARK - New Jersey, 17 other states and the District of Columbia have entered into an agreement with CVS Corporation and related entities to resolve allegations that the company violated consumer protection laws in connection with its "short-fill" practices, Attorney General David Samson and Division of Consumer Affairs Director Reni Erdos said.

The agreement arises out of an investigation by the States and the District of Columbia into allegations that CVS pharmacies have, at times, failed to fill entire prescribed amounts of medications to consumers because of a lack of inventory or for any other reason; yet submitted claims and/or accepted full payment for the entire value of the prescriptions.

CVS, along with related entities, CVS Pharmacies, Inc., and ProCare Pharmacy, Inc., cooperated with the investigation and deny any wrongdoing.

"The agreement sets in place significant measures that will help protect consumers by ensuring that they get what they pay for and are not short-changed when it comes to their prescriptions," Governor James E. McGreevey said.

"We have accomplished what we set out to do," Attorney General Samson said. "Our goals have always centered on protecting consumers from what we believe to be improper practices. By entering into this agreement, we have received assurances from CVS that it will do what it must to make sure that consumers and third-party payers are not short-changed in connection with their prescriptions."

"The States were concerned that CVS was unfairly reaping profits at the expense of consumers when they should not have been," Erdos said. "The agreement resolves those concerns and sets forth strict standards with which CVS must comply."

As part of the agreement, CVS will:

• Within 120 days of the agreement, develop and initiate implementation of written policies and procedures that address the manner in which CVS submits claims to consumers and third-party payers for partial- fill prescriptions. The policies and procedures will require CVS to affirmatively, accurately and clearly provide certain information to the consumer when dispensing a partial-fill prescription, such as the amount of the prescribed medication that has been dispensed and that it is a partial-fill prescription; the reason for furnishing a partial-fill prescription; instructions regarding the need for the consumer to return to the CVS store to obtain any additional medication.
  
  
• Refrain from billing consumers and third-party payers for the value of a full prescription when only a portion of the prescribed medication is delivered to a consumer, except when a cash consumer requests to pay the value of a full prescription after being advised that such payment is not required.
  
  
• Cancel the prescription and return the unused medication to stock according to CVS's "return-to-stock" policy if the consumer fails to return to collect the balance of the prescription.
  
  
• Refrain from requiring any person to initial or sign a log or other document indicating he or she has received the full prescription, if they have not.
  
  
• Maintain and enforce a policy requiring employees to inform any person that less medication than the amount actually prescribed was provided to the person when the person does not receive the full prescription at the initial visit to the pharmacy.

Under the terms of the agreement, CVS will pay the States a cumulative total of $1.1 million in costs and fees. New Jersey's share of the payment is $49,787.

Deputy Attorney General Alex Keoskey of the Division of Law is handling this matter for the State.