CVS Subsidiary Found Guilty of Fraud

Fraud Findings Against CVS Subsidiary

By Michel Daher

Let me break this down more clearly. In the realm of long-term care, unlike the usual trip many of us might make to a pharmacy for medication, long-term care pharmacies handle things differently. They provide medications in bubble packs, salad packs, or baggies and deliver them directly to places like retirement homes, assisted living, board and care homes, or skilled nursing facilities. Typically, when visiting a doctor, a patient might receive a prescription, sometimes with refills or none at all. This is true for patients in these care facilities as well—doctors may prescribe up to a year’s worth of refills or opt for no refills at all. Omnicare, however, was found to have unlawfully bypassed doctors by adding refills to prescriptions to fraudulently bill for claims and send out medications.



The case against Omnicare was brought to light by pharmacist Uri Bassan, who became a whistleblower and filed a lawsuit on behalf of the government and 29 states back in 2015. CVS Omnicare serves some of the largest assisted living facilities nationwide, including those affiliated with Brookdale Senior Living, Atria Senior Living, and Oakmont Senior Living. It’s important to note that because Omnicare is linked to a pharmacy benefit manager (PBM), it secured higher reimbursements for itself compared to independent pharmacies. The lawsuit claimed that Omnicare forged prescriptions impacting patients in 1,766 facilities between 2010 and 2018. Had this been a smaller, independent pharmacy or private entity, severe penalties or jail time would likely have followed.

Recently, Gov. Sarah Huckabee signed Arkansas Act 624, effectively banning PBMs from running pharmacies in the state. CVS stated that this would necessitate the closure of their 23 locations in Arkansas by January 1, 2026, and has since filed a lawsuit against the state, arguing that the law is unconstitutional. CVS asserts that shutting down these stores would negatively impact patients, limit access to medications, raise prescription costs, and lead to about 500 job losses. However, Arkansas has 734 licensed pharmacy operators in total, so CVS’s exit might not be as drastic as they claim. Given these developments, the era of PBMs may be waning, which could be beneficial for both patients and independent pharmacies.


You May Also Like

Democrats hit key threshold in Texas and Alaska in new poll

New Poll Shows Democrats Reaching Key Thresholds in Texas and Alaska

Democrats received a boost in their effort to win control of the…
Federal Judge Blocks Trump’s Border Wall Construction Across Texas’ Big Bend Sector

Federal Judge Halts Trump’s Border Wall Work in Texas’ Big Bend

A federal judge on Friday temporarily blocked the Trump administration from building…
4 teens arrested in fatal shooting of Nashville high school student after football game

4 Teens Arrested in Fatal Shooting of Nashville Student Post-Game

Four teenagers have been arrested in connection with a drive-by shooting that…
North Texas mom fatally shoots two sons, fails to kill herself

North Texas Mother Fatally Shoots Two Sons in Tragic Incident

A North Texas mother allegedly shot her two sons inside a mobile…
Trump's attempted assassin sent mysterious texts about 3D printer leading up to Butler, Pa. shooting: report

Report: Trump Assassination Attempt Suspect Sent Mysterious 3D Printer Texts Before Butler Shooting

Thomas Matthew Crooks, who opened fire in an assassination attempt against President…
Florida teacher accused of dragging seventh-grader 20 feet by the arm out of classroom

Florida Teacher Accused of Dragging 7th-Grader 20 Feet From Classroom

A veteran Florida middle school teacher is facing a child abuse charge…
'Crazy' FlyDubai landing explained by Israeli pilot, who offers steps to prevent future crises

Israeli Pilot Explains Flydubai’s ‘Crazy’ Landing, Prevention Steps

Eliran Almog, a former Israeli helicopter pilot who now leads an aviation…
Russian oligarch’s son sues California after city blocks skyscraper

Russian Oligarch’s Son Sues California City Over Blocked Skyscraper

The son of a Russian oligarch aligned with Vladimir Putin is suing…
America's favorite Halloween candy: Reese's, Hershey's, M&M's top list

Reese’s, Hershey’s and M&M’s Rank Among America’s Top Halloween Candy

Americans have a serious sweet tooth. Reese’s Peanut Butter Cups rank as…
Hawaii sea arch collapses into Pacific Ocean 550 years after its formation

Hawaii Sea Arch Collapses Into Pacific Ocean After 550 Years

A landmark sea arch along the rugged, wave-battered coastline of Hawaii’s Big…
California high school girls blackface scandal grows as NAACP fumes

NAACP Condemns Expanding Blackface Scandal at California High School

Leaders of the California NAACP are condemning a Santa Barbara high school…
Tourist enters closed Maui state park during dangerous hurricane conditions

Tourist Enters Closed Maui State Park During Dangerous Hurricane Conditions

One mainland tourist refused to let a beach closure ruin her birthday…