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

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

Free Trial

Register for free to keep reading.

To continue reading this article and unlock full access to GRIP, register now. You’ll enjoy free access to all content until our subscription service launches in early 2026.

  • Unlimited access to industry insights
  • Stay on top of key rules and regulatory changes with our Rules Navigator
  • Ad-free experience with no distractions
  • Regular podcasts from trusted external experts
  • Fresh compliance and regulatory content every day
Register for free Already a member? Sign in