Caremark, the pharmacy benefit management company (PBM) owned by CVS, agreed to pay $6 million to settle allegations that it failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries who also were eligible for drug benefits under Caremark-administered private health plans. According to the government, Caremark caused Medicaid to incur prescription drug costs for dual eligibles that should have been paid for by the Caremark-administered private health plans rather than Medicaid. The allegations arose from a lawsuit filed by Donald Well, a former Caremark employee, under the qui tam, or whistleblower, provisions of the False Claims Act. Well will receive a whistleblower award of $1 million. DOJ
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