US, 4 States Join CVS Caremark Insurance Fraud Action

Law360, New York (February 13, 2012, 5:23 PM EST) -- The U.S. and four states intervened Monday in a long-running whistleblower suit claiming a CVS Caremark Corp. unit defrauded government insurance programs by failing to reimburse millions of dollars of expenses that should have been ultimately covered by private insurers.

The government alleges that Caremark Rx Inc. has violated the False Claims Act by routinely rejecting, denying, or underpaying on valid reimbursement requests for prescription claims paid by the federal health programs on behalf of beneficiaries of Caremark-administered plans who also have prescription drug coverage under...
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