Navigation Links
CVS Caremark Corp. to Pay $36.7 Million to U.S., 23 States, & D.C. to Settle Medicaid Prescription Drug Fraud Allegations
Date:3/18/2008

WASHINGTON, March 18 /PRNewswire-USNewswire/ -- CVS Caremark Corp. has agreed to pay $36.7 million to settle claims that the company from 2000 to 2006 improperly switched patients from the tablet version of the prescription drug Ranitidine (generic Zantac) to a more expensive capsule version in order to increase Medicaid reimbursement, the Justice Department announced today. CVS Caremark, based in Woonsocket, R.I., operates more than 6,000 retail pharmacies nationwide.

By dispensing the capsule version of Ranitidine rather than tablets, CVS Caremark was able to substantially increase its reimbursement from Medicaid while providing no additional medical benefit to beneficiaries. For example, during the period Dec. 15, 2000, through April 1, 2001, Caremark charged Illinois Medicaid $79.80 for 60 Ranitidine capsules instead of $17.10 for the tablets, leading to a price difference of $62.70 on a single prescription.

"This settlement represents our continuing commitment to vigorously prosecute fraud in government health care programs," said Jeffrey S. Bucholtz, the Acting Assisting Attorney General for the Civil Division. "The United States will not tolerate pharmacies or any other health care providers that attempt to manipulate the Medicaid program to fill their coffers at the taxpayers' expense."

CVS Caremark will pay $36.7 million to resolve a whistleblower lawsuit filed in 2003 by Bernard Lisitza, a licensed pharmacist. The federal share of the settlement is approximately $21.1 million. Twenty-three states and the District of Columbia will share $15.6 million pursuant to separate settlement agreements. Mr. Lisitza will receive $4,309,330.74 as his share of the federal and state settlements.

"Switching medication from tablets to capsules might seem harmless, but when that is done solely to increase profit and in violation of federal and state regulations that are designed to protect patients, pharmacies must know that they are subjecting themselves to the possibility of triple damages, civil penalties and attorney fees," U.S. Attorney Patrick Fitzgerald said. "These penalties, coupled with the willingness of insiders to report fraud, should deter such misconduct, but when it doesn't, the result in this case and others serves notice that we will aggressively pursue all available legal remedies."

CVS Caremark has also entered into a compliance agreement with the U.S. Department of Health and Human Services to ensure that CVS Caremark does not improperly switch drugs in the future. The compliance agreement will be in effect for five years.

The U.S. Attorney's Office in Chicago supervised the joint federal and state health care fraud investigation with assistance from the Justice Department's Civil Division; the National Association of Medicaid Fraud Control Units; the Office of Inspector General for the U.S. Department of Health and Human Services; the Federal Bureau of Investigation; and the U.S. Food and Drug Administration.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Caremark Pharmacy Services Receives New URAC Pharmacy Benefit Management and Drug Therapy Management Accreditations
2. CVS Caremark Celebrates American Pharmacists Month by Thanking Its 20,000 Pharmacists
3. CVS Caremarks Howard McLure Elected New PCMA Board Chairman
4. CVS Caremark All Kids Can and Scholastic Distribute Free Educational Guides in Schools to Champion Acceptance and Build Self-Esteem among Second Graders
5. Pennsylvania Attorney General Corbett Announces Multi-State Settlement With Caremark
6. CVS Caremark All Kids Can Program Announces the Opening of a Boundless(TM) Playground in Dallas to Serve Children of all Abilities
7. Paramount Acquisition Corp. Announces Chem Rx Expansion into Albany, New York Market
8. MaxLife Fund Corp. purchases a portfolio of Life Settlement Policies with a face value of $4,000,000
9. Authentidate Holding Corp. to Report Fourth Quarter and Fiscal 2007 Year End Results on Thursday, September 13, 2007
10. Drug Detection Kits Manufactured By IDenta Corp. Shown During French Television Broadcast (at TF1) - Product Aids French Police In Bust of 600 Kilograms Of Cocaine
11. ComPsych(R) Corp. Announces Health at Work(SM) Award Winners: Sprint, Erie Insurance, City of Naperville and Green Hills Public Library
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/23/2017)... ... June 23, 2017 , ... ... and related services to families and business owners in and around Lackawanna County, ... benefit senior citizens in the area. , Meals on Wheels of NEPA provides ...
(Date:6/22/2017)... ... June 22, 2017 , ... Branches, Inc. has been partnering with ... grant funding to support its programs focused on providing opportunity to low-income families and ... grant by the Foundation of $15,000 to support its , Climb to College & ...
(Date:6/22/2017)... ... June 23, 2017 , ... Despite its pervasiveness, many physicians are unfamiliar ... integrate basic science with clinical practice. Now, however, a timely review has been published ... insight into the etiology of NeuP and educating preclinical scientists on its diagnosis and ...
(Date:6/20/2017)... , ... June 20, 2017 , ... ... announced today that Claritas Capital, a Nashville-based private equity firm, has invested $3.35 ... expansion plans for some time, and Claritas Capital offers the smart money, speed ...
(Date:6/20/2017)... ... June 20, 2017 , ... Hayes, ... published a new eBook titled “ 5 Questions to Ask Before Entering the ... on the Genetic Test Evaluation (GTE) team, the book explores the various types ...
Breaking Medicine News(10 mins):
(Date:6/14/2017)... Calif. , June 14, 2017 The ... the City of Fremont and ... of the bio-pharma industry in California ... technology, enabling executive networking, and fostering workforce development. The ... development and growth of start-ups, as well as small ...
(Date:6/12/2017)... , June 12, 2017 Kineta, Inc., a ... announced Kineta Vice President of R&D and Head ... the Pandemic Preparedness for the Northwest and Beyond ... held on June 14, 2017 from 8:30-10:30 AM PDT at ... Dr. Bedard will be joined by ...
(Date:6/9/2017)... AirXpanders, Inc. (ASX: AXP) (AirXpanders or Company), ... sale and distribution of the AeroForm® Tissue Expander System, ... commercial roll-out in the United States ... hundred (100) medical institutions and health systems, located throughout ... alternative for women who choose reconstructive surgery following a ...
Breaking Medicine Technology: