CVS Pays $5M To End Whistleblower's Medicare Fraud Claims

Law360, New York (October 15, 2012, 5:48 PM EDT) -- CVS Caremark Corp. will pay $5.25 million to settle patient whistleblower allegations that it submitted false prices for certain Medicare prescription drugs that caused some patients to pay significantly more for their medications than they had expected, federal prosecutors said Monday.

The settlement, which resolves claims that CVS subsidiary RxAmerica LLC submitted incorrect prices for Medicare Part D prescription drugs to a federal database, follows a $5 million deal the pharmacy chain reached with the U.S. Federal Trade Commission in January to resolve similar allegations.

“The health care choices facing Americans are complicated enough without patients being misinformed and forced to...

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