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Texas AG Investigates CVS Supply Chain Practices for Medicaid Compliance

· Texas Border Business

Texas Attorney General Ken Paxton has reached out to CVS Health regarding concerns over the company's Diversity, Equity, and Inclusion (DEI) practices in its supply chain. The AG's office warns that CVS's Supplier Diversity Program may violate both state and federal civil rights laws by reserving contracts for suppliers based on demographic criteria. Paxton emphasized that merit should be the basis for judgment, not race. He has previously cautioned that such programs could lead to legal repercussions under the Texas Health Care Program Fraud Prevention Act. CVS has 14 days to respond with compliance measures.

AI summary · Source: Texas Border Business

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