CVS Pharmacy will pay $37.76 million to resolve allegations that it over-dispensed insulin pens and improperly billed federal health programs over a 10-year period.
The settlement resolves claims that CVS pharmacies from 2010 to 2020 repeatedly refilled insulin prescriptions too early, dispensed more insulin than prescribed and under-reported the days-of-supply dispensed, according to a Dec. 2 news release from the Justice Department. These actions allegedly led Medicare, Medicaid, TRICARE and the Federal Employees Health Benefits Program to reimburse CVS for ineligible claims.
As part of the settlement, CVS admitted that some of its pharmacies failed to follow proper billing procedures, including when dispensing full insulin pen cartons. The company also acknowledged that its auto-refill program sometimes triggered premature refills based on inaccurate data.
Of the total settlement, $24.4 million will go to the federal government, with the remainder distributed to “various states,” according to the release.
