Key Takeaways:
- CVS Health Corp (CVS, Financial) has settled allegations of false claims with a payment of $18.2 million.
- The company operates a diverse healthcare business, including retail pharmacies and health insurance.
- CVS faces financial challenges, including declining margins and high debt levels.
California's Attorney General, Rob Bonta, together with the U.S. Department of Justice, has reached a settlement with CVS Pharmacy regarding accusations of violating the California False Claims Act. According to the allegations, from 2010 to 2021, CVS submitted numerous pharmacy claims to Medi-Cal with false electronic certifications. These claims inaccurately stated that patients qualified for drug payments under Medi-Cal, although CVS did not properly verify or document the necessary compliance for a significant portion of these claims. As a result, millions of dollars in false payments were made by Medi-Cal. As part of the settlement, CVS will pay $18.2 million. Attorney General Bonta emphasized the duty of pharmacies to ensure their claims are accurate and well-documented, underscoring the importance of maintaining the integrity of the Medi-Cal program and ensuring funds reach those in need.
CVS Health Corp (
CVS, Financial) is a prominent player in the healthcare sector, offering a diverse set of services. Its operations span over 9,000 retail pharmacy locations primarily in the United States. The company is also a significant pharmacy benefit manager, processing...
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