CVS Agrees to Pay $38 Million to Resolve Insulin Fraud Claims

The US government filed and settled a healthcare fraud suit alleging CVS Pharmacy Inc. improperly billed government healthcare programs for insulin pens from 2010 through 2020.

Under the settlement, CVS agreed to pay $37.76 million to resolve allegations that it violated the False Claims Act by prematurely refilling insulin prescriptions, dispensing more insulin pens than patients needed, and falsely under-reporting the days-of-supply of insulin dispensed, the US Attorney for the Southern District of New York said in an announcement Tuesday.

CVS admitted that its pharmacies often reported the maximum allowable days-of-supply instead of the actual supply dispensed, leading to premature ...