A federal judge ordered CVS Health’s benefit manager unit to pay $289.9 million in damages and penalties for overcharging Medicare for prescription drugs. Chief Judge Mitchell Goldberg tripled damages to $285 million, citing the False Claims Act, and added a $4.87 million civil fine. CVS plans to appeal the decision. Last month, CVS’ Omnicare unit was ordered to pay $948.8 million in a separate whistleblower lawsuit. Goldberg presided over a non-jury trial in the whistleblower case brought by Sarah Behnke, a former head actuary for Medicare Part D at Aetna. CVS argued that the original $95 million in damages was substantial, but the judge disagreed, stating that CVS Caremark’s fraud harmed the government and public trust in the system. Behnke sued in 2014, and CVS purchased Aetna four years later. The False Claims Act allows whistleblowers to sue on behalf of the government and receive a percentage of the recoveries.
Read more at Yahoo Finance: CVS unit must pay $290 million in drug whistleblower lawsuit, judge rules
