Monday, October 15, 2012

DOJ: CVS Unit to Pay $5.25 Million to Settle Alleged False Medicare Drug Pricing


By Debbie Cai

A CVS Caremark Corp. (CVS) unit has agreed to pay $5.25 million to settle claims that it misrepresented prices of certain Medicare prescription drugs, the Department of Justice said.

The Justice Department alleged that from 2007 to 2008, the subsidiary RxAmerica made false submissions to the Centers for Medicare & Medicaid Services, or CMS, for certain generic prescription drugs used in its Web-based tool called Plan Finder. The actual costs of some drugs were significantly higher than RxAmerica's posted rates, according to the Justice Department.

CVS agreed earlier this year to pay $5 million settling allegations by the Federal Trade Commission relating to RxAmerica's inaccurate Plan Finder submissions from late 2007 through 2008.

Posted via email from Jack's posterous

No comments: