CVS pharmacies will pay the state of Connecticut $769,986 to settle allegations that it defrauded Medicaid and other state health insurance programs by switching tablets of ranitidine, a generic form of the popular stomach medication Zantac, for more costly capsules.
The payment is part of a $36.7 million settlement between CVS/Caremark Corp., owner of CVS pharmacies, and 23 states and the District of Columbia.
Attorney General Richard Blumenthal said in a statement, “CVS defrauded taxpayers and deceived patients, illegally changing doctor prescriptions to steal from the state. This scheme befits a crew of con men, not a huge corporation purportedly devoted to health and care. We have administered a stiff dose of medicine — $36.7 million returned — to cure CVS’ illegal and unethical manipulation of Medicaid rules. CVS will rightly restore $769,000 to Connecticut taxpayers — money gained gaming reimbursement rates. I will continue fighting Medicaid fraud to assure that Connecticut residents receive full value for their tax dollars.”
Connecticut will receive $427,559 of the $765,986, with the remainder going to the federal government, which shares the cost of Medicaid with the states.
In addition to the payments, CVS will submit to federal monitoring and sign a corporate integrity agreement pledging not to switch dosage forms if the change increases costs to third party payers, including Medicaid.
