Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Messi hat-trick lifts Argentina past Algeria at World Cup

    June 17, 2026

    France beats Senegal 3-1 in FIFA World Cup opener

    June 17, 2026

    Germany routs Curaçao 7-1 in World Cup 2026 opener

    June 16, 2026
    Los Angeles 24×7Los Angeles 24×7
    • Automotive

      Ford recalls nearly 420,000 SUVs over seat belt issue

      June 4, 2026

      Mercedes-Benz USA unveils 2027 S-Class with MB.OS tech

      January 30, 2026

      Ford issues US recall for Escape Focus Explorer and Lincoln MKC

      January 22, 2026

      New Porsche Cayenne Electric delivers 850kw power and 2.5s acceleration

      November 19, 2025

      Toyota launches major $10B battery facility in North Carolina

      November 14, 2025
    • Business

      Gold rebounds from six-month low as inflation data looms

      June 11, 2026

      U.S. stocks end mixed as tech volatility hits Nasdaq

      June 10, 2026

      Global oil prices fall as Brent crude drops over 4%

      June 10, 2026

      Trade divides cost global economy up to $307bn, WEF says

      June 5, 2026

      Gold prices climb as dollar and oil prices weaken

      June 4, 2026
    • Entertainment

      Sony confirms God of War trilogy remake and PS5 prequel

      February 13, 2026

      Disney’s Fantastic Four beats Superman in box office debut

      July 27, 2025

      Disney and Marvel’s R-rated film hits billion-dollar milestone

      August 17, 2024

      Web3 leader Immutable rolls out $50M gaming rewards initiative

      April 27, 2024

      USHER’s pre-Super Bowl experience on Apple Music

      February 7, 2024
    • Health

      New York bromate bill puts pizza and bagels in focus

      May 23, 2026

      Hantavirus probe deepens after deaths on Atlantic cruise

      May 4, 2026

      Revolution drug extends survival in pancreatic cancer

      April 15, 2026

      California produce review finds PFAS on 37% of samples

      March 30, 2026

      FDA probes E. coli outbreak tied to Raw Farm cheddar

      March 17, 2026
    • Lifestyle

      Apple and ISSEY MIYAKE unveil new 3D-knit iPhone Pocket

      November 13, 2025

      JP Morgan funds Fresha with $31 million for AI and robotics growth

      August 23, 2024

      Adidas, Highsnobiety debut limited-edition sneakers

      January 6, 2024

      Unraveling Starbucks’ phenomenon as a worldwide coffee powerhouse

      September 1, 2023

      How Nike’s Kobe 8 Protro Halo Marks an Emotional Milestone

      August 29, 2023
    • Luxury

      Price hikes and lack of innovation erode luxury market confidence

      November 18, 2024

      Uncover the allure of Rolex Deepsea – luxury awaits.

      April 10, 2024

      Beyond timekeeping to the prestige of the Rolex Day-Date

      March 2, 2024

      Rare uncut emerald dazzles at Sharjah show

      February 1, 2024

      Porsche and Frauscher launch the electric 850 Fantom Air

      October 17, 2023
    • News

      Missouri skydiving crash kills 12 near Butler airfield

      June 16, 2026

      Guterres demands release of UN personnel held in Yemen

      June 11, 2026

      Tropical Storm Amanda forms over open Pacific waters

      June 4, 2026

      Meteor blast over New England traced to natural fireball

      June 1, 2026

      California emergency continues after Garden Grove tank risk

      May 25, 2026
    • Sports

      Messi hat-trick lifts Argentina past Algeria at World Cup

      June 17, 2026

      France beats Senegal 3-1 in FIFA World Cup opener

      June 17, 2026

      Germany routs Curaçao 7-1 in World Cup 2026 opener

      June 16, 2026

      Canada and Bosnia open Group B with 1-1 draw

      June 13, 2026

      FIFA World Cup 2026 opens with Mexico City ceremony

      June 12, 2026
    • Technology

      Meta restores services after Facebook and Instagram outage

      June 13, 2026

      Apple launches Siri AI upgrade across major devices

      June 9, 2026

      YouTube Premium adds podcast tools as free tier runs ads

      June 1, 2026

      SpaceX Starship V3 flies after last-minute launch scrub

      May 25, 2026

      SpaceX annual launch target puts FAA oversight in focus

      May 21, 2026
    • Travel

      Maine tourism feels strain as Canadian travel drops

      March 30, 2026

      Houston Bush airport warns of four-hour TSA lines

      March 26, 2026

      U.S. inbound travel declined in 2025 even as global tourism rose

      January 28, 2026

      Spirit Airlines warns of possible shutdown by next year

      August 13, 2025

      US mandates visa bonds to strengthen immigration enforcement measures

      August 6, 2025
    Los Angeles 24×7Los Angeles 24×7
    Home » CVS to appeal $290 million Medicare overbilling penalty
    Business

    CVS to appeal $290 million Medicare overbilling penalty

    August 21, 2025
    Facebook WhatsApp Twitter Pinterest LinkedIn Telegram Tumblr Email Reddit VKontakte

    A U.S. federal court has ordered CVS Health’s pharmacy benefit management unit, Caremark, to pay nearly $290 million in damages and penalties over allegations it defrauded the Medicare system. The decision, issued this week by Chief U.S. District Judge Mitchell Goldberg in Philadelphia, marks one of the largest False Claims Act rulings against a pharmacy benefit manager in recent years. The case originated from a whistleblower lawsuit filed in 2014 by Sarah Behnke, a former actuary at Aetna specializing in Medicare Part D.

    CVS to appeal $290 million Medicare overbilling penalty
    CVS fined in Medicare fraud as 2025 crackdown intensifies on PBMs and U.S. healthcare billing. Credit – CVS Health.

    Behnke alleged that Caremark submitted inaccurate drug cost data to the Centers for Medicare & Medicaid Services (CMS) for the 2013 and 2014 calendar years. These cost adjustments, known as direct and indirect remuneration (DIR) fees, allegedly led to Medicare overpaying approximately $95 million to private insurers, including Aetna and CVS’s SilverScript unit. In June, Judge Goldberg found Caremark liable for the overbilling and initially awarded $95 million in damages. On Tuesday, he applied treble damages as required under the False Claims Act and added $4.87 million in civil penalties, bringing the total award to $289.87 million.

    The court determined that Caremark had acted with reckless disregard and deliberate ignorance, legal standards sufficient to trigger maximum financial penalties under federal law. While the judge concluded that there was no clear evidence Caremark knowingly committed fraud, he emphasized that the company’s failure to properly vet the data it submitted constituted serious misconduct. The decision also upheld the constitutionality of the penalty amount, rejecting arguments that the financial sanctions were excessive under the Eighth Amendment. CVS Health, the parent company of Caremark, expressed disappointment with the ruling and confirmed plans to appeal.

    Court triples damages against CVS under False Claims Act

    The company noted that its core businesses, including CVS Pharmacy and CVS Health Corporation, were not found liable. CVS stated that it remains committed to compliance with all regulatory obligations and believes the penalties imposed do not align with the company’s intent or the circumstances involved. The ruling includes post-judgment interest, which will accrue until the award is paid in full.

    While the federal government stands to recover a significant sum, it remains unclear what portion of the settlement Behnke will receive under whistleblower provisions of the False Claims Act, which typically allow claimants to receive between 15 and 30 percent of recovered funds. This judgment adds to the mounting legal pressures facing CVS. In July, a federal court in Manhattan ordered the company’s long-term care pharmacy unit, Omnicare, to pay $948.8 million in damages and penalties related to the submission of thousands of allegedly invalid prescriptions to federal healthcare programs. CVS has also appealed that ruling.

    Federal Trade Commission flags PBM pricing abuse

    The cases come amid heightened scrutiny of pharmacy benefit managers, or PBMs, which act as intermediaries between drug manufacturers, insurers, and pharmacies. Earlier this year, the Federal Trade Commission released a report identifying significant price markups by major PBMs, including Caremark, on commonly used drugs. The agency’s findings have intensified calls for transparency reforms in the sector. Combined, the penalties against Caremark and Omnicare total over $1.2 billion, underscoring growing enforcement efforts by federal authorities to crack down on fraudulent billing practices within the U.S. healthcare system.

    The Department of Justice has increasingly prioritized False Claims Act litigation, particularly in the Medicare and Medicaid space, as a means to recoup losses and deter systemic abuse. The outcome of CVS’s appeals in both cases could set important precedents for how PBMs operate and are regulated, particularly as the government continues to examine the role of intermediaries in driving up healthcare costs for patients and taxpayers. – By Content Syndication Services.

    Related Posts

    Messi hat-trick lifts Argentina past Algeria at World Cup

    June 17, 2026

    France beats Senegal 3-1 in FIFA World Cup opener

    June 17, 2026

    Germany routs Curaçao 7-1 in World Cup 2026 opener

    June 16, 2026

    Missouri skydiving crash kills 12 near Butler airfield

    June 16, 2026

    Canada and Bosnia open Group B with 1-1 draw

    June 13, 2026

    Meta restores services after Facebook and Instagram outage

    June 13, 2026
    Latest News

    Messi hat-trick lifts Argentina past Algeria at World Cup

    June 17, 2026

    France beats Senegal 3-1 in FIFA World Cup opener

    June 17, 2026

    Germany routs Curaçao 7-1 in World Cup 2026 opener

    June 16, 2026

    Missouri skydiving crash kills 12 near Butler airfield

    June 16, 2026

    Canada and Bosnia open Group B with 1-1 draw

    June 13, 2026

    Meta restores services after Facebook and Instagram outage

    June 13, 2026

    FIFA World Cup 2026 opens with Mexico City ceremony

    June 12, 2026

    Gold rebounds from six-month low as inflation data looms

    June 11, 2026
    © 2026 Los Angeles 24x7 | All Rights Reserved
    • Home
    • Contact Us
    • Disclaimer

    Type above and press Enter to search. Press Esc to cancel.