Dive Brief:

CVS has agreed to pay Massachusetts’ Medicaid program $12.3 million to settle allegations that the company’s pharmacy benefit manager overcharged the state for prescription drugs.

The settlement was disclosed Thursday by the Massachusetts attorney general . It brings to a close a lawsuit the state filed in April accusing the pharmacy chain of offering lower drug prices to customers paying cash but still billing MassHealth higher rates, violating the state’s pricing regulations.

CVS has also agreed to review its prescription drug pricing for MassHealth every year to ensure it’s not overcharging the program.

Dive Insight:

In 1995, MassHealth adopted a drug pricing policy entitling the Medicaid program to the lowest prices for prescription drugs that pharmacies like CVS cha

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