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:1/23/2017)... ... 2017 , ... “The Inn at the Mill”: a story of love and redemption, hope ... become happy and content. , “The Inn at the Mill” is the creation of ... and Vermont and is now living in Berks County on Crow Hill. The ...
(Date:1/23/2017)... ... January 23, 2017 , ... “Some Infallible Characteristics of Christ”: a fascinating ... of Christ” is the creation of published author, Rev. Dr. Robert W. Thomas, the ... years, a preacher for over nineteen, a pastor for over fifteen years. He is ...
(Date:1/22/2017)... Viejo, California (PRWEB) , ... January 22, 2017 , ... ... Photo Cloud to create a beautiful 3D slideshow with complete ease," said Christina Austin ... the Generators browser to place in the FCPX timeline. Presets include scenes ...
(Date:1/21/2017)... California (PRWEB) , ... January 21, 2017 , ... "ProDOF is the perfect set of ... subject to another subject in a scene," said Christina Austin - CEO of Pixel Film ... given scene. Easily create the illusion of a DSLR racking focus from one area ...
(Date:1/21/2017)... ... 21, 2017 , ... Northern California Medical Associates (NCMA) is ... multi-specialty medical group. The dermatology practice provides general dermatologic treatment, outpatient surgery, clinical ... this excellent dermatology practice to our group’s medical services,” explains NCMA CEO, Ruth ...
Breaking Medicine News(10 mins):
(Date:1/23/2017)... 23, 2017  Delcath Systems, Inc. (NASDAQ: ... treatment of primary and metastatic liver cancers, today announced ... President and Chief Executive Officer of Delcath will be ... Markets, Thirteenth Annual Investor Conference at the Boca Raton ... , on Tuesday, January 31, 2017 at 10:30 ...
(Date:1/23/2017)... , Jan. 23, 2017 The American ... the Pharmacy and Medically Underserved Areas Enhancement ... of Representatives. The legislation, which was previously introduced in ... patient access to health care through pharmacists and their ... include Representatives Brett Guthrie (R-KY), G.K. ...
(Date:1/23/2017)... , January 23, 2017 Ahead of today,s ... see how they have fared at the close: Kite Pharma Inc. ... (NASDAQ: OVAS ), and Regeneron Pharmaceuticals Inc. (NASDAQ: ... shares were relative laggards on Friday, January 20 th , 2017, ... complimentary research reports on these stocks now at: ...
Breaking Medicine Technology: