CVS Health Not Entitled to Compensation for Opioid Claims
CVS Health has been determined not to receive compensation from various American international groups or insurers, including Chubb.
A decision from the Delaware Supreme Court established that the claims against CVS from the government, hospitals, doctors, and benefits plans were focused on economic losses, not on personal injuries or property damage that would be covered by CVS’s general liability insurance policy.
The court dismissed the notion that CVS’s nationwide settlement of $5 billion related to opioid claims in November 2022 suggested that the lawsuits were centered on physical injuries. The settlement, while addressing the opioid crisis, does not change the nature of the underlying lawsuits which do not aim for damages tied to individual injuries.
In response, CVS argued against the ruling, emphasizing its commitment to training pharmacists to make informed decisions in line with legal obligations for the welfare of patients.
Meanwhile, representatives from AIG, Chubb, and their legal teams did not immediately respond to inquiries for comment.
A growing number of insurers face lawsuits from pharmacy chains, drug manufacturers, and others seeking to recover costs related to opioid issues.
CVS has maintained that they only provided medications per doctors’ prescriptions, although critics point to concerns about widespread distribution and potential misuse.
Other pharmacy chains like Walgreens and Walmart have settled similar cases for over $8 billion.
CVS, based in Woonsocket, Rhode Island, had been contesting two decisions from Delaware courts that denied them insurance coverage in over 2,300 cases, as outlined in the recent ruling.
Concerns from the government have highlighted the rising expenses related to opioid addiction treatment, while hospitals have noted impacts on their financials, and third-party payers have raised issues regarding prescription spending and addiction treatment costs.
The Delaware Supreme Court sided with Chubb in a similar prior case, which included ceremonial aid in 2022. CVS claimed its policies should offer broader coverage, but the court concluded that the aid was “similar in all material respects.”
This case is known as CVS Opioid Insurance Lawsuit from the Delaware Supreme Court.
