CVS Pharmacy Settles Overbilling Case for $17.5 Million

CVS Caremark will pay $17.5 million to settle a federal lawsuit that the company overcharged Medicaid programs in Florida and other states.

The company’s pharmacies overbilled the government health program, which covers low-income people, for drugs prescribed to those who also were covered by private insurance. According to the suit, the company’s pharmacy outlets overbilled individuals covered by Medicaid and other third-party insurers between October 2002 and the end of 2010.

CVS agreed to pay $8 million to the federal program and $9.5 million to be divided among Florida and the other states. About 15 percent of the money will be shared with a CVS pharmacist in Minnesota who reported the overbilling. CVS claims that the company “did not intentionally overcharge” the government and was settling the case to avoid a longer litigation process.

“The company regularly receives reimbursement from Medicaid and believes it is in compliance with each state’s billing requirements for dual eligible patients,” CVS said.

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