HARTFORD, CT — Connecticut and a group of other states have reached a $35 million settlement with CVS Pharmacy, resolving allegations that CVS knowingly submitted or caused to be submitted false claims to the Medicaid program related to the dispensing of insulin pens.
As part of the settlement, up to $25.1 million is allotted to the 36 participating states’ Medicaid programs, consisting of up to $12 million for the states and $13 million for the United States. The portion of the multistate settlement attributable to Connecticut Medicaid is $1.09 million, of which the state-only share is just under $634,000, according to Attorney General William Tong’s office.
The settlement resolves the allegations set forth in five federal qui tam actions. A qui tam action is a lawsuit filed by a private individual on behalf of the government to recover money lost to fraud. The qui tams alleged claims under the federal False Claims Act and various state false claims statutes that CVS submitted false claims related to over-dispensing of insulin pens.
“Over a decade, CVS over-billed our public healthcare programs for huge quantities of insulin pens, filling refills too early, too often, and too many, Tong said. “In coordination with states across the country and our federal law enforcement partners, we are holding CVS accountable. We will continue to act aggressively to protect taxpayer dollars and the integrity of our healthcare programs.”
In a statement, CVS spokesperson Roslyn Guarino...
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