CVS Subsidiary Agrees to $5 Million Settlement with U.S. DOJ

A CVS subsidiary, RxAmerica, has agreed to a $5 million settlement with the U.S. Department of Justice based on allegations that they defrauded the Medicare prescription drug plan.  RxAmerica allegedly received Medicare Part D payments for covered generic prescription medication at prices that were sometimes significantly higher than pricing data the company submitted to Medicare's web-based Plan Finder tool.  This not only cost the Medicare program money, but also allegedly caused beneficiaries losses when they entered a gap in their coverage (frequently referred to as the "donut hole") due to the price difference of their medication.  The two whistleblower plaintiffs in the case should be eligible for up to 30% of the settlement according to the qui tam provisions of the False Claims Act, but the press release from the Department of Justice did not specify the amount.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.