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CareMed Forks Over $10M To Settle FCA Phone Fraud Suit

Law360, Washington (October 10, 2014, 1:13 PM EDT) -- CareMed Pharmaceutical Services agreed Thursday to pay the government $10 million to resolve a False Claims Act suit lodged in New York federal court accusing the company of double-billing insurers and lying on the phone to secure early authorization of drug coverage.

The retail specialty pharmacy admitted that its employees falsely claimed to be from physicians’ offices when calling insurers, and misrepresented patients’ clinical information to meet drug authorization criteria, according to the deal.

The settlement came the same day the U.S. and New York state...
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