New York Struggles to Defend CVS Drug Discount Contract Lawsuit

New York sought to convince a skeptical state appellate court Wednesday that it should be able to revive its challenge against CVS Pharmacy Inc. for requiring health providers under a federal drug discount program to use a certain a third-party administrator.

The state told the New York Supreme Court First Appellate Department that a lower court was wrong to dismiss its lawsuit over how CVS dealt with providers under the federal 340B Drug Pricing Program. That plan allows covered entities such as qualifying safety-net hospitals, clinics, and other providers that treat a disproportionate number of low-income and uninsured patients to ...