CVS Health agreed to pay $37.76 million to settle allegations that it dispensed too many insulin pens to patients and improperly billed federal healthcare programs for those insulin prescriptions.
The settlement, which the Department of Justice announced Tuesday, resolves allegations that during a 10-year period, from 2010 through 2020, CVS violated the False Claims Act in connection with its billing and dispensing of insulin pens to patients enrolled in government healthcare programs, including Medicare, Medicaid, TRICARE and the Federal Employees Health Benefits Program.
The federal government alleged that CVS improperly requested and received reimbursement for premature refills, dispensed more insulin pens than patients needed per their prescriptions, and falsely under-reported the days-of-supply of insulin that its pharmacies dispensed.
Under the settlement approved by U.S. District Judge John G. Koeltl, CVS agreed to pay a total of $37.76 million, with $24.4 million to the United States and the remainder to various states.
As part of the settlement, CVS also admitted and accepted responsibility for certain conduct alleged by the government in its complaint, including that government healthcare programs "paid CVS substantial amounts for insulin pen refills that were ineligible for reimbursement and CVS pharmacies dispensed more insulin to beneficiaries than they needed," the DOJ said in a press release.
In a statement, a CVS Health spokesperson said, "While we do...
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