CVS's pharmacy benefit management company, Caremark, will pay the federal government and five states a total of $4.25 million to resolve allegations the company knowingly failed to reimburse Medicaid for prescriptions for patients who were also eligible for benefits under a Caremark health plan.
The original whistle-blower suit alleged Caremark had been erasing reimbursement claims from dual eligibles from its computer system, causing Medicaid to pick up the tab for prescription drugs that should have been covered by Caremark.
Under the terms of the settlement, the federal government will receive $2.31 million and Arkansas, California, Delaware, Louisiana and Massachusetts will share $1.94 million.
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