In a settlement that echoes like a warning shot across the pharmacy industry, CVS Pharmacy Inc. agreed Tuesday to pay $37.76 million to resolve federal allegations that it spent a decade overdispensing and overbilling government healthcare programs for insulin pens. Prosecutors say the violations, stretching from 2010 to 2020, inflated claims and broke trust in systems meant to safeguard taxpayer dollars.
According to the U.S. Department of Justice, CVS allegedly refilled insulin pen prescriptions too early, dispensed quantities beyond clinical need, and underreported the number of days of supply provided to patients enrolled in Medicare, Medicaid, Tricare, and the Federal Employees Health Benefits Program.
The government asserts that these actions led to a slew of false claims, marking substantial violations of the False Claims Act. Like clock hands spinning too fast to follow, CVS was accused of pushing refills prematurely in pursuit of quicker billing cycles.
“Pharmacies must follow appropriate refill schedules and accurately report what they dispense,” said U.S. Attorney Jay Clayton for the Southern District of New York. “CVS pharmacies frequently failed to do so.
In a settlement that echoes like a warning shot across the pharmacy industry, CVS Pharmacy Inc. agreed Tuesday to pay $37.76 million to resolve federal allegations that it spent a decade overdispe...