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CVS to pay $858K over inflated drug claims

April 21, 2011

Indiana Attorney General Greg Zoeller says the state will get $858,000 from CVS Pharmacy Inc. to settle allegations that the company overcharged Medicaid programs.

The amount represents Indiana's share of a $17.5 million settlement reached last week with 10 states and the federal government.

The Justice Department says 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.

Zoeller said Thursday the total state settlement paid to the Indiana Medicaid program will be $858,176, including $572,117 for the state's share of Medicaid restitution and $286,058 for additional recoveries.

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