AdvancePCS, a subsidiary of Caremark RX, has agreed to pay $137.5 million to resolve a civil suit that alleged it solicited and received kickbacks from pharmaceutical manufacturers and paid kickbacks to potential customers to induce them to contract with AdvancePCS.
Caremark is the second largest pharmacy benefit manager in the country and its AdvancePCS subsidiary provided pharmacy services to health plans covering federal employees and senior citizens who participated in Medicare Plus Choice programs.
The investigation included allegations brought by whistleblowers who had been employed by AdvancePCS. The whistleblowers filed lawsuits on behalf of the United States under the private whistleblower provision of the False Claims Act. They also filed lawsuits under the False Claims Act statutes of eleven states and the District of Columbia. Those investigations are still pending.
The United States Attorney’s Office for the Eastern District of Pennsylvania issued a press release on the settlement on September 8, 2005.