US EditionJudge Orders CVS’ Omnicare Unit to Pay $949M in Fraud Case
NEW YORK, JUL 9 – A judge imposed a $542 million penalty and $406.8 million in damages for over 3.3 million false claims submitted to Medicare, Medicaid, and Tricare, government officials said.
- A federal judge has ruled that CVS Health’s Omnicare division must forfeit $948.8 million as penalties and damages due to submitting more than 3.3 million fraudulent Medicare claims in New York City from 2010 to 2018.
- The lawsuit originated in 2015 when whistleblower Uri Bassan alleged that Omnicare submitted claims to Medicare, Medicaid, and the military's Tricare program for prescriptions lacking proper authorization, with the Department of Justice becoming involved in 2019.
- Judge Colleen McMahon described the decade-long fraud as large and noted Omnicare knew about it but failed to take corrective steps while ruling that CVS is jointly liable for $164.8 million of the penalties.
- McMahon awarded $406.8 million in damages, which triples the jury's April award of $135.6 million as mandated by the False Claims Act, while CVS argues the fine is unconstitutional and plans to appeal despite no evidence of patient harm.
- The ruling poses a financial challenge amid CVS’s $372.8 billion 2024 revenue and pressures from healthcare costs, but the penalty remains small relative to its size with implications for industry compliance enforcement.
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CVS Omnicare Ordered to Pay Nearly $1 Billion in Medicare Fraud Case
CVS Health’s Omnicare unit must pay $948.8 million in penalties and damages following a federal ruling on Monday in a whistleblower lawsuit accusing the company of massive Medicare fraud involving over 3 million false claims for federal reimbursement. [RELATED: NH Federal Court Charges Mass Man for Running a $6.3 Million Medicare Fraud Scheme as Part [...] The post CVS Omnicare Ordered to Pay Nearly $1 Billion in Medicare Fraud Case appeared fir…
CVS ordered to pay $949m over invalid prescriptions in federal lawsuit - The Boston Globe
The lawsuit was filed under the False Claims Act, which helps the government combat fraud and requires tripling of damages, which inflated CVS’s penalty. The company argues the Constitution bars excessive fines.
Judge Orders CVS To Pay Nearly $1 Billion In Fraud Case * 100PercentFedUp.com * by Danielle
CVS Health's subsidiary Omnicare faces a staggering $948.8 million penalty for submitting fraudulent claims to Medicare and Medicaid. Discover the shocking details behind this landmark ruling and what it means for the healthcare industry.
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