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CVS settles with Massachusetts over workers comp pricing allegations


The Massachusetts attorney general’s office has reached a $6.15 million settlement with CVS Pharmacy Inc. to resolve allegations that the retail pharmacy failed in some instances to follow prescription pricing procedures designed to keep costs down and prevent overcharges in the workers compensation system.

The state claimed CVS billed and was paid for prescription drugs in excess of prices allowed by state law. CVS allegedly also failed to follow federal limits for Medicare and the Massachusetts maximum allowable costs when making pricing determinations, according to a statement issued by the state attorney general’s office.

The attorney general’s office also said it would work with CVS, “to seek improvements to the Massachusetts workers’ compensation billing system and establish procedures to prevent overcharges.”

The office said it has recovered more than $20 million in settlements over comp drug pricing violations with Walgreens Co., Express Scripts Holding Co., Optum Rx Inc., Stop & Shop Supermarket Co. and United Pharmacy Inc.