The Hidden Costs of Vertical Integration in Medicare Part D

The Hidden Costs of Vertical Integration in Medicare Part D

A May 2026 audit from the Department of Health and Human Services (HHS) Office of Inspector General reveals that vertical integration within the prescription drug supply chain delivers a paradoxical outcome for Medicare Part D beneficiaries: lower monthly premiums coupled with significantly higher out-of-pocket expenses. The report highlights how large corporations controlling insurance providers, pharmacy…

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Major Hospital Systems Sue CVS Health Over Alleged 340B Drug Pricing Scheme

Major Hospital Systems Sue CVS Health Over Alleged 340B Drug Pricing Scheme

Three major hospital systems—Mount Sinai in New York, University of Michigan Health and Sparrow Hospital, and the University of Kansas Hospital Authority—filed lawsuits on Monday against CVS Health and its subsidiaries. The plaintiffs allege that the pharmacy giant orchestrated a secret scheme to siphon hundreds of millions of dollars in savings intended for the federal…

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