Pharmaceutical company CVS Caremark faces a significant fine due to fraud allegations
CVS Health's PBM Caremark Ordered to Pay $289.9 Million in Damages
A federal judge has ordered CVS Health's Pharmacy Benefit Manager (PBM), Caremark, to pay nearly $290 million in damages and penalties for overcharging Medicare on prescription drugs over a decade ago.
The case, dating back more than a decade, has resulted in fines totalling $289.9 million, according to the new order by Judge Mitchell Goldberg of the Philadelphia federal court. The initial ruling ordered Caremark to pay $95 million in damages, with final rulings on penalties deferred. However, Judge Goldberg tripled the initial damages of $95 million, bringing the total damages to $289.9 million.
The parties involved in the case are pharmaceutical companies and Medicare. The order was made by Judge Goldberg on Tuesday, following a whistleblower lawsuit that accused Caremark of overcharging Medicare on prescription drugs. Caremark was found liable for these allegations in June by the same federal court.
The damages include payments from Caremark Rx, CaremarkPCS Health, and CVS Caremark Part D Services. However, the new order does not specify how these damages will be distributed among the three entities. Additionally, the order does not provide details on any appeals or further legal actions that may take place.
The order comes after Caremark was found liable for overcharging Medicare on prescription drugs. The new order does not mention any changes to the liability ruling made in June. It does not specify any additional penalties beyond the tripled damages.
This ruling marks a significant development in the long-running case and underscores the importance of pharmaceutical companies adhering to Medicare guidelines when billing for prescription drugs.
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