State employees and retirees could see increased health care costs thanks to an impasse in negotiations between the State Health Plan and CVS Caremark, the Plan's Pharmacy Benefits Manager.

The State Treasurer's Office announced Thursday that CVS Caremark refuses to honor its current contract with the Plan. Instead, it wants to rewrite the contract to increase profits. The Plan also contends that Caremark has already withheld millions of dollars in rebates dating back to 2023.

This comes as the Plan faces a massive shortfall and anticipates premium and cost increases for plan members.

SEANC released a joint statement with Treasurer Brad Briner calling on CVS Caremark to honor its contract.

"Prescription drug costs are already sky high. State employees and retirees cannot afford to pay more," said SEANC Executive Director Ardis Watkins. "We commend Treasurer Brad Briner and State Health Plan Executive Administrator Thomas Friedman for taking on this fight to bring true transparency to what we're paying. We stand behind their efforts to hold CVS Caremark to their word."

SEANC will continue to monitor this and update members should more information be available.