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 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (3)
  1. whatever says:

    How much did the company make overcharging? If they made $30 mil extra then this was worth it.

  2. X says:

    The CEO of a corporation is responsible for what goes on in the company.
    It seems to me that the CEO should be charged with criminal charges of grand theft and thrown in Prison for 20 years.
    If a bank robber steals $17 million, he will certainly spend that much time in jail.
    What the company did, at the behest of the CEO is no less a crime!!

    If the CEO was sentenced to 20 years in prison with no right of parole, it might send a pretty significant message to others – in what ever industry that they might be in – do watch what they are doing.

  3. X says:

    I would also think that since CVS is a multistate Corp. that this particular violation would be a federal crime as well. The crime should be subject to federal charges!

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