I recently read about an antitrust lawsuit for CVS, and they had to pay something like $5 million. Considering the revenue of just one store, and then extrapolating that nationwide.... yeah $5mil is really punitive.
Part of the judgement was that they were no longer permitted to defraud their customers or file false insurance claims, etc....
CVS Caremark Paying $5 Million To Settle Charges Of Misrepresenting Drug Prices.
The New York Times (1/13, B1, Abelson, Singer, Subscription Publication) reports, "After more than two years of investigation, CVS Caremark agreed on Thursday to pay $5 million to settle charges by the Federal Trade Commission that the company had misrepresented the price of certain prescription drugs in one of its Medicare drug plans, causing many older consumers to pay significantly higher prices than advertised." This"settlement comes at a time of intensive government scrutiny of
pharmacy benefit managers like CVS Caremark, which run prescription drug plans for employers and insurers." Currently, "the F.T.C. is reviewing the proposed merger of the two main competitors to CVS Caremark: Medco Health and Express Scripts."
The Washington Post (1/13, Elboghdady) reports, "The FTC charged that the mispriced drugs were bought by RxAmerica beneficiaries at CVS and Walgreens pharmacies from 2007 through at least November 2008." The incorrect "prices were posted on several Web sites, including one run by the Center for Medicare & Medicaid Services, which has a tool that enables people to calculate estimated drug-plan costs and figure out which one willhelp them avoid the doughnut hole for the longest period."
The AP (1/13) reports that the settlement "will be used to reimburse Medicare prescription drug beneficiaries who paid more than they expected for the drugs."
Bloomberg News (1/13, Forden) reports,
"The settlement, which requires CVS to reimburse consumers who overpaid for certain prescription drugs, also bars CVS Caremark from making deceptive claims with regard to Medicare Part D drug prices, the FTC said today in an e-mailed statement." Also covering the story are the Wall Street Journal (1/13, Kendall, Subscription Publication) and Reuters (1/13).