CVS Settles Medicaid Case for $17 Million

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The pharmacy giant CVS has agreed to pay federal and state governments $17.5 million in claims, while maintaining that the company did not knowingly defraud the government. The settlement ends a lawsuit that started in 2009 when a pharmacist in Minnesota blew the whistle on the systematic and widespread over-billing of Medicaid.

Officials said CVS was paid a higher amount by Medicaid than it would have been paid if the company had followed correct billing procedures and submitted the claims to third-party insurers.

“Medicaid covers the poorest, most vulnerable people in American society. This needed government program for prescriptions is a disservice to everyone and won’t be tolerated,” said Daniel Levinson, inspector general of the U.S. Department of Health and Human Services. [Source]

CVS will allow government monitoring for three years to make sure no more errors occur.

The whistleblower will receive $2.5 million in Informant Rewards. You can read the full case on