CVS Caremark was ordered to pay the U.S. government at least $95 million in damages after a federal court found it had overcharged Medicare for generic drugs. The ruling came in a case filed in 2014 by a whistleblower who alleged the PBM had knowingly and falsely claimed funds from the U.S. government.
The court found that the PBM had overcharged Medicare for generic drugs between 2010 and 2016 to benefit its bottom line.
Caremark may have to shell out even more cash than that. Next month, hearings will be held to determine the appropriate level of financial penalty imposed on the PBM. Under the False Claims Act (the law under which the lawsuit was brought), CVS may be liable for three times the damages and an added penalty adjusted for inflation.
