CVS Must Face Whistleblower’s Medicare Drug Collusion Claims

CVS Health Corp. and others must defend against a suit alleging that they violated the False Claims Act by engaging in an anti-competitive scheme to prevent Medicare Part D recipients from accessing less expensive drugs.

Whistleblower Ellsworth Associates LLP adequately alleged that the defendants—which include Medicare plan sponsor SilverScript Insurance Co.—colluded to receive larger profits from brand-name drugs than would have otherwise been realized from generic drugs, and that the federal government was overcharged because of the scheme, the US District Court for the Eastern District of Pennsylvania said.

Ellsworth partner Alexandra Miller worked for CVS for 19 years, and ...