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Louisiana’s state health plan may need an additional $90 million in spending authority to cover pharmacy claims through the end of the year, The Center Square reports.
The need comes as higher-than-expected prescription use and rising drug prices push the Office of Group Benefits toward the limit of its CVS Caremark contract. The agency emphasized to lawmakers this week that it isn’t seeking new cash—only permission to raise the contract cap from $890 million to $980 million so it can continue paying pharmacies for medications used by roughly 200,000 state employees, retirees and dependents. The Joint Legislative Budget Committee is expected to vote on the request Dec. 11.
The adjustment arrives as the state prepares for major changes in how its pharmacy benefits are managed. A temporary contract with CVS took effect this year, followed by a newly rebid structure for 2026 that shifts most of the work to Louisiana-based Liviniti.
Despite the higher cap, officials stressed the state’s net cost will be far lower once drug rebates and federal subsidies are applied—likely closer to $600 million. They also noted the request does not increase CVS Caremark’s compensation or profit margin.
