Red flags CVS Caremark Corporation (NYSE: CVS ) suffered a sanction from the Centers for Medicare and Medicaid Services (CMS) for its SilverScript Plan in January, which means no new member enrollment until the sanction is lifted. Watch this relationship the long-term; as the administrator of Medicare and Medicaid, CMS is the 800-pound gorilla of healthcare, so hopefully CVS will get the sanction lifted soon and will avoid re-offending. Walgreen Due to a dispute with Express Scripts that has since been resolved (but not after doing some significant damage to earnings), Walgreen reported lower earnings per share (EPS) for FY 2012 than FY 2011 ($2.42 compared to $2.92). Walgreen Company (NYSE: WAG ) operates on a fiscal year; Q3 of FY 2013 is closest to Q1 of calendar year 2013. Walgreen reported a Q3 2013 EPS of $.65, up slightly from $.62 in the year-ago quarter, which was itself a decline from $.65 in 2011.