Ind. to receive thousands in lawsuit

Indiana is set to receive more than $858,000 in a lawsuit against CVS Pharmacy Inc., stemming from charges that the pharmacy chain overbilled the Medicaid program for prescription drug reimbursement.

Indiana Attorney General Greg Zoeller announced the settlement number last Thursday, which is only part of a $17.5 million settlement CVS recently reached with 10 states and the federal government.

As part of the False Claims Act, a pharmacist in Minnesota — the first to raise awareness of the issue in private court — will receive 16 percent of the total CVS
settlement.

In a press release, Zoeller said the use of the False Claims Act is a powerful tool that, if used properly, can thwart fraud committed against federal government programs.

“It allows a company insider with knowledge of illegal billing practices to file a private lawsuit, into which the state or federal governments can intervene,” he said. “If a company engaging in fraud later settles or pays a judgment, then the original whistle-blower is entitled to a percentage of the recovery, in acknowledgement of the huge risk they took and courage they showed in exposing fraud by their employer
against taxpayers.”

CVS Pharmacy Inc. operates more than 7,000 retail pharmacies throughout the United States. Under the settlement of the civil suit, CVS will pay nearly $8 million to the federal government and more than $9.5 million, plus interest, to the 10 states in which suits were filed against the company.