CVS Accused Of Years Of Faulty Insulin Refills In $37.8 Million Settlement

Benzinga

CVS Health shares slipped after U.S. prosecutors accused the company of improper billing practices involving insulin pens across federal healthcare programs. Prosecutors said CVS sought reimbursement for refills that were unnecessary or prematurely dispensed and understated how much insulin patients actually received. Internal audits indicated company management knew about the over-dispensing for years. CVS settled the civil fraud case the same day it was filed, agreeing to pay $37.76 million to federal and state governments. Shares closed down 1.61% at $76.37.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03CBS HealthShares fell on Wednesday after federal prosecutors alleged the company engaged in

00:07improper insulin pen billing practices across federal health care programs, according to Benzinga.

00:13Prosecutors said CBS repeatedly sought reimbursement for refills that were unnecessary,

00:18premature, or inaccurately reported, leading to a civil health care fraud lawsuit that was

00:23filed and settled the same day. CVS agreed to pay $37.76 million, with $24.4 million going to the

00:31federal government and the remainder to participating states. Officials said CVS understated the true

00:38amount of insulin dispensed, which enabled premature auto refills and caused some patients to accumulate

00:44excess insulin. Prosecutors said internal audits and PBM chargebacks showed CVS management knew the

00:50company was over-dispensing insulin for years. CVS shares were down 1.61% at $76.37 on Wednesday.

00:59For all things money, visit Benzinga.com.

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