Massachusetts Attorney General Andrea Joy Campbell announced that her office has reached a $12.25M settlement with CVS Pharmacy (CVS) to resolve allegations that CVS charged MassHealth, the state’s Medicaid program, higher prices than they offered to the general public for the same drugs. As part of the settlement, CVS will pay $12.25M to MassHealth and adopt a yearly reconciliation process in which they review prescription drug pricing for MassHealth members to ensure that MassHealth is not overcharged in the future. The settlement resolves allegations in an April lawsuit filed by the Attorney General’s Office that CVS offered lower drug prices to cash-paying customers through a discount program administered by a company called ScriptSave but evaded its responsibility to report and bill MassHealth those lower, discounted rates. The AGO alleged that this conduct violated Massachusetts pricing regulations, which require pharmacies to charge MassHealth the lowest price they charge any other customer.
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