CVS to pay $5M to settle drug pricing allegations - 13 WTHR Indianapolis

CVS to pay $5M to settle drug pricing allegations

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WASHINGTON, DC -

The Department of Justice says a unit of CVS Caremark has agreed to pay over $5 million to settle allegations that it reported false prescription drug pricing data to the government's Medicare program.

Federal investigators say CVS' RxAmerica subsidiary reported false information about prices of generic prescription drugs between 2007 and 2008. The Centers for Medicare and Medicaid Services used the information in an online tool, which seniors could use to estimate their out-of-pocket drug expenses. Department of Justice officials say the real drug prices were significantly higher.

CVS says it agreed to the settlement to avoid protracted and expensive litigation. It noted the period in question came before it acquired RxAmerica through its takeover of Longs Drugs Stores.

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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