This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Loyalty Strained at Caremark

Meanwhile, Calpers has yet to raise any concerns about the Caremark probes. Like the federal government, Calpers switched from Medco to Caremark after Medco came under government scrutiny. But Calpers spokesman Clark McKinley told TheStreet.com last week that the Medco investigation had nothing to do with that decision.

To be fair, Caremark has not attracted a federal-level whistleblower lawsuit like the one pending against Medco. But as first reported by TheStreet.com in July, the federal Office of Inspector General inside the Office of Personnel Management has subpoenaed Michael Leonard -- the Chicago attorney representing the former Caremark pharmacists -- for information about the Florida case. The attorney general of Illinois has now subpoenaed Leonard as well, according to the Chicago Tribune.

The attorney general's office did not return a phone message from TheStreet.com. Meanwhile, Caremark spokesman Gerard Carney declined to comment even when asked about any new subpoenas. So far, the company has not disclosed anything indicating that it has received a subpoena from the federal agency. It also has not mentioned a different subpoena, unrelated to the multi-state probe, from the state of Illinois.

But Burns, for one, sees a company -- and, indeed, an industry -- at risk. He believes that companies like Caremark will eventually lose out to competitors that are more willing to show how they actually make their cash.

"Why would you possibly want to go to a PBM that won't tell you what's going on," he asked, "when there are PBMs that will?"

4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs