CVS Settles Whistleblower Case Over Switching

To be generic or not to be...Zantac....maybe a need to move some old stock on the shelves? BD

The big pharmacy chain has agreed to pay $37 million to settle what is believed to be the first case involving prescription switching by a retailer. According to a multi-state lawsuit, CVS allegedly charged the government up to 400 percent more for Medicaid patients by illegally changing generic Zantac scripts from tablets to higher-priced capsules. The federal complaint and settlement agreement, which involves 24 states, says CVS made huge profits by evading federal and state price ceilings when it unlawfully switched to the capsules.

The generic form of Zantac, which is an antacid, typically comes in tablets. The federal government set maximum prices that Medicaid would pay for tablets, while infrequently prescribed capsules had no maximum prices. So when CVS switched patient scripts, the change wound up costing taxpayers up to 400 percent more, according to court documents.