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    A California woman is suing CVS, the largest pharmacy chain in America, for allegedly charging more to customers who use insurance to pay for certain generic prescriptions. The lawsuit, filed on Monday, accuses CVS Health Corporation of participating in a "fraudulent scheme" and claims the plaintiff, Megan Schultz, paid $165.68 for a prescription in July that, had she bought without using insurance, would have only cost $92."CVS never told her that paying in cash would allow her to pay 45% less for the drug; instead, CVS remained silent and took her money — knowing full well that no reasonable consumer would make such a choice," the complaint says. The problem, it alleges, is with co-pays sent back to pharmacy benefit managers, or PBMs — the intermediary between insurance companies and pharmacies who negotiate the prices that insurance companies have to pay the pharmacies. PBMs control which pharmacies are in-network for the insurers, incentivizing CVS to offer them a portion of their sales so they can get more clients. But consumers picking up prescriptions at their neighborhood CVS are blind to that. The agreements between CVS and the PBMs are based on confidential contracts, meaning the "consumer pays the amount negotiated between the PBM and CVS even if that amount exceeds the price of the drug without insurance," the suit says. As a result, it continues, CVS can overcharge unknowing costumers by collecting co-pays that exceed the pharmacists' price and then remit the excess payment back to the PBMs in what's known as "clawback" payments. cialis active 1, 2016, millions of patients who carry prescription drug insurance through CVS/caremark will no longer be covered for more than two dozen popular medications, including Viagra. The insurance provider said this week that it will be dropping 26 drugs from its formulary, or list of covered medications. Instead, it said patients could switch to cheaper alternatives. "For those drugs that are removed, equally effective products with lower overall costs remain available on the formulary," CVS said in a statement provided to CBS News. That may leave many wondering: What is an effective alternative to the little blue pill? There is currently no generic version of Viagra on the market in the U. (no matter what kind of email solicitations or online ads you may have seen offering to sell it). The manufacturer, Pfizer, holds an exclusive patent on the drug.

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    Viagra, a well-known erectile dysfunction medication, is one of 26 drugs being removed from the 2016 standard formulary, the company said. "I want to make sure it is clear that this does not impact availability of the drug in our CVS/pharmacy stores, it is related to our standard formulary for those payors whose pharmacy benefits we manage as their PBM through CVS/Caremark," said Christine Cramer, a CVS spokesperson in an email to CNBC. The company said it will begin contacting members and physicians about the move in the early fall. "As always, clinical acceptability of the drugs included in the standard formulary is among our primary considerations, enabling us to continue to provide plan members with access to high-quality products within all covered classes of drugs," Cramer said. "For those drugs that are removed, equally effective products with lower overall costs remain available on the formulary." The news originally was reported by Bloomberg on Tuesday. According to that report, CVS customers can still get coverage for Eli Lilly's Cialis ED drug starting Jan. Shares of CVS were up around 0.8 percent in midday trade on Wednesday. (Get the latest quote here.) CVS earnings rise despite no tobacco fix In the company's quarterly conference call on Tuesday, CVS announced its overall strategy, which includes 26 additional products being removed from the 2016 standard formulary. According to the call, this plan would "maintain Pfizer is committed to ensuring patient access to our medicines. Pfizer has taken the unusual step of selling its erectile dysfunction drug, Viagra, to consumers on its Web site, in an effort to establish a presence in the huge online market for the popular blue pill, considered to be one of the most counterfeited drugs in the world. Viagra is one of Pfizer’s marquee drugs — the company said it brought in more than $2 billion in sales in 2012 — but some drug experts estimate Pfizer could be losing hundreds of millions of dollars a year to a prolific black market of online pharmacies that cater to men too embarrassed to buy the drug through traditional means. As of Monday, in an arrangement with CVS/pharmacy, patients in the United States with a valid prescription for Viagra are able to fill their order through the new Web site, where the sentence “Buy real Viagra” is featured prominently. Patients will still need to visit a doctor, but they will be spared the additional trip to the pharmacy counter. If Pfizer’s move is successful, more drug makers could follow suit, especially for other products that treat conditions carrying social stigmas, such as weight loss. “This could be the prelude to a vast number of products” of medical importance being sold online, said Roger Bate, a resident scholar at the American Enterprise Institute and an expert in counterfeit drugs. But others cautioned against such predictions, saying that Viagra might be particularly well suited to online sales because of its powerful brand recognition and the widespread competition from counterfeiters.

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