CHICAGO (AP) -- Pharmacy chain CVS Caremark Corporation has agreed to pay almost $37 million to the federal government, 23 states and the District of Columbia to settle claims it billed Medicaid programs for a more expensive formulation of an antacid.
The investigation began more than five years ago after a suburban Chicago pharmacist alerted authorities.
Attorneys say Rhode Island-based CVS gave Medicaid patients Ranitidine capsules instead of less expensive tablets. The drug is a generic version of the heartburn medication Zantac.
Authorities say the switch is illegal and allowed the company to charge state Medicaid programs more and reap a bigger profit.
Lawyers say CVS admits no wrongdoing in the case. The settlement was announced Tuesday.
Copyright 2008 by The Associated Press. All Rights Reserved.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.