March 18, 2008
Bad Billing Practices Cost CVS $36.7M
CVS/Caremark Corp. will pay the Massachusetts Medicaid Program $3.8 million after a seven-year investigation into billing improprieties.
The Massachusetts Attorney General's Office led the investigation, working with other state and federal authorities. Altogether, CVS/Caremark will pay $36.7 million as the result of a settlement with the U.S. government, 23 states and the District of Columbia.
Investigators accused the company of switching dosage forms of an anti-ulcer medication in violation of federal and state rules. They said the switch caused Medicaid programs nationwide to pay more than they should have for the drug.
The Woonsocket, R.I.-based company has also agreed to a corporate integrity agreement, promising not to switch medication dosages if doing so would increase costs to third-party payers.
The Massachusetts Attorney General's Office led the investigation, working with other state and federal authorities. Altogether, CVS/Caremark will pay $36.7 million as the result of a settlement with the U.S. government, 23 states and the District of Columbia.
Investigators accused the company of switching dosage forms of an anti-ulcer medication in violation of federal and state rules. They said the switch caused Medicaid programs nationwide to pay more than they should have for the drug.
The Woonsocket, R.I.-based company has also agreed to a corporate integrity agreement, promising not to switch medication dosages if doing so would increase costs to third-party payers.
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