PRESS RELEASE FOR IMMEDIATE RELEASE
Contact: Michael Undorf, Deputy Attorney General
Consumer Protection Unit
After Hours Contact: Olha N.M. Rybakoff, Deputy
Director, Consumer Protection Unit
Date: January 9, 2003
ATTORNEY GENERAL BRADY ANNOUNCES $1.1 MILLION
SETTLEMENT WITH CVS
(Wilmington, DE): Attorney General M. Jane Brady today announced that Delaware and 18 other jurisdictions have settled a multi-state investigation into alleged unfair deceptive billing practices of CVS Pharmacies, Inc. The settlement resolves allegations that CVS initially charged consumers the full amount for prescriptions that were not completely filled due to insufficient inventory and then retained the excess payment if the consumer did not return to pick
up the balance of the prescription at a later date.
This is the second settlement involving CVS’s billing practices. During April 2001, following an investigation by the Department of Justice and the National Association of Medicaid Fraud Units, CVS agreed to settle claims that it billed federal and state health care programs for quantities of medication that exceeded the amounts actually given to consumers.
"Many of the consumers affected by these illegal practices could little afford to be shortchanged. This settlement ensures that consumers will be getting what they pay for," said Attorney General Brady.
Under today’s settlement, CVS is required to develop and implement pharmacy billing policies designed to prevent consumers from being billed for medication until the entire amount prescribed has been dispensed and
to ensure future compliance with the state’s consumer protection laws. CVS has also agreed to pay Delaware and the other jurisdictions a total of $1.1 million in penalties and costs. Delaware will receive $38,219.12 from the settlement proceeds. Of that amount, the settlement reserves $10,719.12 to be made available to benefit low-income, disabled or elderly consumers of prescription medications.