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CVS Accused Of Overcharging Medicaid, Agrees To Pay $17.5 Million

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(Photo by Joe Raedle/Getty Images)

(Photo by Joe Raedle/Getty Images)

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WASHINGTON (AP) — The Justice Department says CVS Pharmacy Inc. has agreed to pay $17.5 million to settle allegations it overcharged Medicaid programs in 10 states.

The department said Friday the settlement resulted from an investigation into claims CVS collected more than it should have from Medicaid for filling prescriptions for people who have other insurance as well. Typically, pharmacies can only bill Medicaid for the amount of a patient’s co-payment in those situations.

Justice credited a whistleblower, CVS pharmacist Stephani LeFlore of St. Paul, Minn., with bringing the allegations to the government’s attention. LeFlore will receive nearly $2.6 million under laws rewarding whistleblowers. The federal and 10 state governments split the rest of the $17.5 million.

The states are: Alabama, California, Florida, Indiana, Massachusetts, Michigan, Minnesota, New Hampshire, Nevada and Rhode Island.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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