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CVS Health to Pay $37.8 Million Over Insulin Pen Scheme
2 Dec
Summary
- CVS will pay $37.76 million to settle claims of improper insulin pen reimbursements.
- The company allegedly dispensed more pens than prescribed, violating the False Claims Act.
- Settlement resolves a Justice Department lawsuit and whistleblower cases filed since 2018.
CVS Health will pay $37.76 million to settle charges that it dispensed excessive insulin pens and then obtained improper reimbursements from Medicare, Medicaid, and other government healthcare programs. The allegations, stemming from a Department of Justice lawsuit, claim CVS violated the False Claims Act from 2010 to 2020.
Specifically, CVS is accused of dispensing more insulin pens than doctors prescribed, obtaining reimbursements for premature refills, and underreporting its dispensing activities. The company allegedly instructed pharmacy staff to report maximum days of supply to ensure prompt reimbursement.
The settlement resolves a lawsuit initiated in 2018 and several whistleblower claims, with whistleblowers set to receive a portion of the payout. CVS stated that insulin pen billing has presented challenges due to labeling and packaging, but expressed satisfaction in resolving the issue.
