WASHINGTON (AFP) — US pharmacy group, CVS Caremark Corporation, has agreed to pay 36.7 million dollars to settle a government probe that it improperly dispensed a pricier drug to patients, the Justice Department said Tuesday.
The Justice Department said that CVS switched patients from a tablet version of the prescription drug ranitidine, the generic version of Zantac, to a more expensive capsule version.
Officials claimed CVS did this, between 2000 and 2006, to gain bigger government reimbursements related to patients who receive government assistance to pay for their drugs.
"This settlement represents our continuing commitment to vigorously prosecute fraud in government health care programs," said Jeffrey Bucholtz, a senior Justice Department official.
Investigators said that the practice enabled CVS in some instances to charge almost 63 dollars more for a single prescription of 60 ranitidine capsules than if it had provided tablets.
The drug is used to treat and prevent stomach ulcers and to reduce conditions in which the stomach produces too much acid.
CVS confirmed the settlement, but denied any wrongdoing.
"Pursuant to the settlement agreement, the company has expressly denied engaging in any wrongful conduct," the Rhode Island-headquartered company said.
The pharmacy giant said it stocked capsule versions of the drug because its acquisition costs for capsules had been lower than for tablets.
CVS said it had also agreed to pay an additional 800,000 dollars related to investigative costs and other fees.
Copyright © 2009 AFP. All rights reserved. More »
