CVS to pay $6M to settle overcharging allegations throughout Mass., including Worcester

Photo | Courtesy Andrea Campell's campaign website Massachusetts Attorney General Andrea Campbell

Write a Comment

By Isabel Tehan

CVS Pharmacy has reached an agreement with state Attorney General Andrea Campbell’s office to pay $6.15 million to settle allegations it failed to follow prescription pricing procedures in several Massachusetts locations, including Worcester.

The investigation alleged Woonsocket, Rhode Island-based CVS in some instances did not follow Massachusetts state regulations controlling prescription costs for those in the workers’ compensation system at pharmacies in Worcester, Boston, New Bedford, and Springfield, according to a Monday press release from the Attorney General’s Office.

The workers’ compensation system sets limits for what a hurt employee can be charged for prescriptions related to their job injury. Benchmarks for drug costs, including the Federal Upper Limit and the Massachusetts Maximum Allowable Cost, are required to be reviewed at pharmacies when pricing prescriptions for certain workers’ compensation insurance charges. The pharmacies in the settlement did not follow these procedures, the Attorney General’s Office alleged in the suit.

Under the terms of the settlement, CVS and the Attorney General’s Office are set to collaborate on improvements to the workers compensation billing system, according to the press release. The attorney general’s office, previously under now-Governor Maura Healey, has resolved a series of settlements with other pharmacies including Walgreens and Optum Rx, since 2019.