CVS Health Faces Congressional Investigation for Alleged HIPAA Violations in Louisiana Lobbying Campaign

CVS Health Corporation (NYSE:CVS) is one of the best inexpensive stocks to buy according to hedge funds. On September 8, two Republican congressmen, House Oversight Committee Chair James Comer and Federal Law Enforcement Subcommittee Chair Clay Higgins, initiated an investigation into CVS on whether CVS violated the HIPAA privacy law by using confidential patient data for political advocacy.

The investigation was prompted by a mass text message campaign CVS sent to 1000s of its customers in Louisiana on June 11 this year. The texts used patient data, originally provided for prescription drug services, to lobby against the Louisiana bill H.B. 358. This bill would have prevented companies from operating pharmacy benefit managers and pharmacies within the state.

According to reports, the texts threatened that local pharmacies would close and drug prices would rise if the bill were passed, and urged recipients to contact their state representatives to oppose it. Louisiana’s Attorney General Liz Murrill sent a cease-and-desist letter to CVS the day after the texts were sent. The state later filed an enforcement action in state court, alleging the text campaign and CVS’s ownership structure violated the state’s trade practices law.

CVS Health Corporation (NYSE:CVS) provides health solutions in the US. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments.

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Disclosure: None. This article is originally published at Insider Monkey.