CVS to Pay $37.5 Million to Settle Pill Switching Case

CVS is paying $36.7 million to settle allegations that the company defrauded the government by improperly switching patients taking generic Zantac to capsules from the tablet from of the heartburn drug. The company is kicking in an extra 800 grand to cover investigative costs.

Capsules, tablets, who cares? While the form of the drug (generic name: ranitidine) doesn't make a difference to the health of most patients, it matters for taxpayers. For patients covered by Medicaid, the capsules can cost four times as much as the tablets, according to a so-called whistleblower lawsuit filed by a pharmacist and joined by the feds and dozens of states, the WSJ reports.

The switching allegedly happened in CVS pharmacies between April 1, 1999 (April fools, taxpayers!) and Dec. 31, 2006. The company announced the settlement today, adding that it isn't admitting to any wrongdoing in the case. CVS said it stocked the capsules simply because they were cheaper for the company to buy, not out of any desire to get a higher reimbursement from Medicaid. The lawyers who brought the suit posted their own statement.

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Comments

[zigzag1]

10:40 PM on 03/18/2008

Hope the pharmacist made out well blowing the whistle. As a retired pharmacist, I am sure CVS did this intentionally and got caught.

[PhillyQuaker]

08:19 PM on 03/18/2008

CVS recently shorted me 10 pills on a 30 day supply. Not a word - No--,"we're short right now, we'll call you when we get more in..." just gave me 20 pills for the price of 30!
I counted them when I got home and they made up the difference, but I had to go back in. What about people who don't know to count their pills when they get home?

[anastasiabeaverhousen]

06:54 PM on 03/18/2008

I have never been a fan of CVS. It's one of those stores that has the amazing ability to piss you off within minutes of coming in the front door. They NEVER have what I'm looking for.

I hadn't been in a CVS in over a year until last week when I needed a replacement battery for a hand-held device. I look up and see a CVS - the only store within miles of where I was. I think, "ok, what the heck, I'll try it".

I walk in the door, find the display containing batteries and see that over 60% of the display is empty - out of stock. I couldn't believe it - just shook my head and left.

[bola47]

10:30 PM on 03/18/2008

stores that supply service and have inventory no longer exist. long gone are the variety stores and the corner drug store.