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CVS Caremark’s $95m penalty for Medicare drug overbilling

Photo: Joe Raedle/Getty Images

Whistleblower alleged Caremark reported higher costs of drugs to the government than it paid pharmacies for dispensing Medicare Part D drugs.

CVS Caremark has been ordered to pay $95m (which could rise to $285m if treble damages are imposed) after a federal judge found the pharmacy benefit manager improperly inflated Medicare Part D drug prices by failing to report required pharmacy discounts, violating the False Claims Act. 

The ruling follows a