CVS Agrees To Pay $17.5 Mil for Inflated Prescriptions Claims

WASHINGTON (KTLA) — Drug store chain CVS has agreed to pay $17.5 million in fines Friday in connection claims that it overcharged customers for prescriptions, the Justice Department said.

CVS is accused of collecting excessive funds from Medicaid for submitting inflated prescription claims in 10 states.

Those states are California, Indiana, Florida, Massachusetts, Michigan, New Hampshire, Nevada, Rhode Island, Minnesota and Alabama.

Officials said the drugstore chain was collecting more from Medicaid than it would’ve if it had followed correct policy procedures and submitted claims to third-party insurers. Medicaid policy only allows pharmacies to bill for patient’s co-pay.

The Justice Department did not specify how much the government was overbilled.

The claims were brought to the Justice Department by a whistleblower in Minnesota. They will receive $2.6 million from the settlement, which will come from the monies recovered from CVS.

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