CVS Pharmacy is ordered to pay $6.15 million for allegedly failing to follow pricing procedures on workers’ compensation prescriptions at several locations including Springfield, according to Attorney General Andrea Joy Campbell’s office.
According to the court documents, in some circumstances, CVS allegedly failed to follow Massachusetts law and regulations that help keep costs low in the Massachusetts workers’ compensation insurance system. CVS locations in Springfield, New Bedford, Boston, and Worcester allegedly had failures concerning prescriptions filled.
When an employee is hurt on the job, they are entitled to lost wages, compensation for injuries, and payments for certain injury-related expenses, under the Commonwealth’s Workers’ Compensation system. The system sets limits for the cost of prescriptions for injured workers and requires companies to validate prices against certain regulatory benchmarks before processing their charges.
Under state regulations, various benchmarks must be reviewed when making pricing determinations for certain workers’ compensation insurance prescription drug charges.
“The state’s workers’ compensation system operates at its best when it is functional, transparent and affordable,” said AG Campbell. “Ensuring that pharmacies follow procedures and do not drive-up costs in our workers’ compensation system is an important priority for my office, and we will continue to advocate to keep this critical system available and accessible on behalf of workers and employers.”
In addition to the settlement of $6.15 million, CVS will work with the Attorney General’s Office to look for improvements to the Massachusetts workers’ compensation billing system and establish procedures to prevent overcharges.
Reporter: Ashley Shook