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

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:
(Date:6/27/2016)... (PRWEB) , ... June 27, 2016 , ... ... for mental health professionals, announced today its affiliation with Tennessee Counseling Association. ... solutions to the network of the Tennessee Counseling Association, adding exclusive benefits and ...
(Date:6/26/2016)... ... June 26, 2016 , ... On June 10-11, 2016, A ... 2016 Cereal Festival and World’s Longest Breakfast Table in Battle Creek, MI, where the ... history as home to some of the world’s leading providers of cereal and other ...
(Date:6/25/2016)... ... June 25, 2016 , ... Experts from the American Institutes ... Research Meeting June 26-28, 2016, at the Hynes Convention Center in Boston. , ... advance care planning, healthcare costs and patient and family engagement. , AIR researchers ...
(Date:6/25/2016)... , ... June 25, 2016 , ... As a lifelong ... Cum Laude and his M.D from the David Geffen School of Medicine at UCLA. ... to Los Angeles to complete his fellowship in hematology/oncology at the UCLA-Olive View-Cedars Sinai ...
(Date:6/24/2016)... ... June 24, 2016 , ... Those who have experienced ... feelings, many turn to unhealthy avenues, such as drug or alcohol abuse, as a ... has released tools for healthy coping following a traumatic event. , Trauma sufferers tend ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... Story Highlights: ... the health care industry is causing providers to review ... Deloitte offers a suite of solutions for health care ... cost optimization: labor resource analysis, revenue cycle optimization and ... outcomes and better economics ...
(Date:6/24/2016)... SOUTH SAN FRANCISCO, Calif. , June 24, ... GBT ), a biopharmaceutical company developing novel ... with significant unmet needs, today announced the closing ... 6,400,000 shares of common stock, at the public ... the shares in the offering were offered by ...
(Date:6/24/2016)... 24, 2016 Research and ... "Structural Electronics 2015-2025: Applications, Technologies, Forecasts" report ... In-Mold Electronics, Smart Skin, Structural Health Monitoring, ... Structural electronics involves electronic and/or electrical components ... replacing dumb structures such as vehicle bodies or ...
Breaking Medicine Technology: