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CVS Settlement Nets State Almost Half a Million Dollars
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Connecticut is to get almost half a million dollars of a multi-million dollar settlement reached with CVS Caremark after the company was accused of trying to defraud Medicaid.


The federal government and 23 states sued Rhode Island based CVS over prescriptions for ranitidine, the generic form of Zantac, a medicine for heartburn and ulcers.  CVS was accused of switching patients from the tablet form of the drug to capsules, which carried a higher reimbursement from Medicaid.  The government was first alerted to the problem by an Illinois pharmacist, who will now also have a share in some of the cash from CVS. 

Announcing Connecticut’s portion of the $37 million settlement, Attorney General Richard Blumenthal said the company defrauded taxpayers and deceived patients, and called the scheme worthy of a crew of conmen and not a huge corporation,  CVS has admitted no wrongdoing in making the settlement, saying it stocked the capsule form of the drug because it was cheaper.  In addition to the cash payout, the company has also agreed to a five year compliance agreement to ensure it does not improperly switch medicines in the future.