CVS Caremark Says Court Botched Drug Price Math in Fraud Case

CVS Caremark Corp. asked a federal district court to reconsider its decision that a whistleblower has demonstrated that CVS inaccurately reported prescription drug prices to Medicare Part D, a program under which private insurers share costs with the government.

Whistleblower Sarah Behnke alleges that CVS violated the False Claims Act by causing insurers to misrepresent to the government the amount spent on prescription drugs on behalf of Medicare beneficiaries, which caused Medicare to overpay subsidies. She says CVS, a pharmacy benefit manager, contracted with pharmacies to pay a fixed average price for drugs, but actually reported individual sale prices that ...