CVS Health (NYSE: CVS) announced a settlement with the Federal Trade Commission (FTC) that resolves all outstanding litigation and investigations related to its pharmacy benefits management and affiliated pharmacy businesses, including matters involving rebate practices, pharmacy network contracting, and vertical integration.

Under the agreement, CVS Caremark will implement several changes to its standard commercial client offerings. These include aligning member cost sharing more closely with net drug costs after rebates, moving away from rebate guarantees and spread pricing, and expanding transparency through enhanced reporting on drug pricing, rebates, and member payments.

The settlement also requires CVS Caremark to cap members' insulin costs at $25 per month as part of expanded affordability programs, promote point-of-sale rebate passthrough as a standard option, delink manufacturer compensation from list prices, and transition to acquisition-based reimbursement for independent retail pharmacies.

CVS Caremark said it negotiated savings of nearly $80 billion on prescription drugs for clients and members last year and delivered nearly $900 million in savings to 25 million Americans through point-of-sale rebates. The company projects its clients will realize an estimated $450 million per year in savings over the next 10 years through expanded rebate adoption.

"CVS Caremark remains committed to lowering costs and bringing greater transparency to prescription drug pricing," said Ed DeVaney, Executive Vice President of CVS Health and President of CVS Caremark.

CVS Caremark said it will begin implementing the settlement's provisions according to timelines established with the FTC.