Close Menu

    Subscribe to Updates

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

    What's Hot

    Erie mass shooting leaves eight victims and gunman dead

    October 12, 2026

    US bull market enters fifth year with earnings in focus

    October 12, 2026

    US and European stocks close higher as bond yields ease now

    October 10, 2026
    Tucson PatriotTucson Patriot
    • Automotive

      Jaguar Type 01 electric GT debuts with 1,030 PS

      October 7, 2026

      Audi launches Q9 and high performance SQ9 V8 SUV variants

      July 31, 2026

      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
    • Business

      US bull market enters fifth year with earnings in focus

      October 12, 2026

      US and European stocks close higher as bond yields ease now

      October 10, 2026

      Gold prices rise as weak US jobs data shifts rate outlook

      October 5, 2026

      US Treasury sets $119 billion notes and bonds auctions

      October 2, 2026

      US economy grows 2.2% after second-quarter GDP revision

      October 2, 2026
    • Entertainment

      Sony confirms God of War trilogy remake and PS5 prequel

      February 13, 2026

      Netflix profit hit by Brazil tax charge despite revenue rise

      October 22, 2025

      Fantastic Four leads with second-biggest opening in 2025

      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
    • Health

      Walgreens eye drops included in nationwide sterility recall

      October 5, 2026

      Pennsylvania measles cases reach 943 across 39 counties

      October 2, 2026

      Global health leaders push country-led AI disease control

      September 24, 2026

      Pennsylvania measles outbreak reaches 693 cases and four deaths

      September 16, 2026

      Lundberg Family Farms white rice jasmine recall updated by FDA

      August 31, 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

      Erie mass shooting leaves eight victims and gunman dead

      October 12, 2026

      Nearly 12,000 U.S. school book bans set new annual record

      October 7, 2026

      Southern California heat wave extends record October streak

      October 7, 2026

      US Army schedules Nidal Hasan execution for December 3

      October 7, 2026

      Gulf system AL92 could become Tropical Storm Isaias

      October 6, 2026
    • Sports

      Spain beat Portugal to reach World Cup quarter-finals

      July 7, 2026

      Norway beats Brazil to reach World Cup last eight

      July 6, 2026

      Egypt oust Australia on penalties to reach World Cup last 16

      July 4, 2026

      Spain defeats Austria 3-0 to enter World Cup last 16

      July 3, 2026

      Kane double sends England past Congo DR at World Cup

      July 2, 2026
    • Technology

      AI Capital expenditure will continue to rise by 10-20%

      October 10, 2026

      Google reshapes Gemini access across free and paid plans

      October 5, 2026

      Google puts Project Suncatcher satellite into orbit

      October 5, 2026

      Gemini 4 Argon becomes Google’s new flagship AI model

      October 2, 2026

      OpenAI math advisory group takes shape at Princeton

      September 23, 2026
    • Travel

      Holiday travel airfare deals enter peak booking season

      October 3, 2026

      US keeps Belgium at Level 2 in updated travel advisory

      August 6, 2026

      Maine tourism feels strain as Canadian travel drops

      March 30, 2026

      Houston Bush airport warns of four-hour TSA lines

      March 26, 2026

      US winter storm disrupts flights nationwide

      March 17, 2026
    Tucson PatriotTucson Patriot
    Home » CVS Caremark fined nearly $290 million over Medicare fraud
    Business

    CVS Caremark fined nearly $290 million over Medicare fraud

    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 Caremark fined nearly $290 million over Medicare fraud
    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

    Erie mass shooting leaves eight victims and gunman dead

    October 12, 2026

    US bull market enters fifth year with earnings in focus

    October 12, 2026

    US and European stocks close higher as bond yields ease now

    October 10, 2026

    AI Capital expenditure will continue to rise by 10-20%

    October 10, 2026

    Jaguar Type 01 electric GT debuts with 1,030 PS

    October 7, 2026

    Nearly 12,000 U.S. school book bans set new annual record

    October 7, 2026
    Latest News

    Erie mass shooting leaves eight victims and gunman dead

    October 12, 2026

    US bull market enters fifth year with earnings in focus

    October 12, 2026

    US and European stocks close higher as bond yields ease now

    October 10, 2026

    AI Capital expenditure will continue to rise by 10-20%

    October 10, 2026

    Jaguar Type 01 electric GT debuts with 1,030 PS

    October 7, 2026

    Nearly 12,000 U.S. school book bans set new annual record

    October 7, 2026
    © 2026 Tucson Patriot | All Rights Reserved
    • Home
    • Contact Us
    • Disclaimer

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