CVS agrees to $17 million Medicaid fraud settlement

NEWS IN BRIEF — Posted May 9, 2011

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CVS Pharmacy Inc. will pay the government more than $17 million to resolve allegations that the company filed false claims with 10 state Medicaid programs, according to a settlement announced April 15 by the Dept. of Justice.

The agency accused CVS of submitting inflated prescription claims to Medicaid programs in Alabama, California, Florida, Indiana, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire and Rhode Island. The claims led to CVS being paid more than it was owed by Medicaid, the Justice Dept. said.

Under a separate settlement between the Dept. of Health and Human Services Office of Inspector General and CVS over an unrelated false billing investigation in 2008, the government said, CVS billing procedures will be monitored for three years. Officials also will conduct regular audits of CVS compliance to the agreement.

In a statement, CVS said it did not intentionally overcharge any state's Medicaid program and that the settlement was not an admission of any wrongdoing.

Note: This item originally appeared at

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