Daily Briefing

Around the nation: CVS to pay $289M in whistleblower lawsuit


CVS Health has been ordered to pay $289 million in damages as part of a long-running whistleblower lawsuit that accused the company of submitting inflated pharmaceutical claims to the federal government, in today's bite-sized hospital and health industry news from Illinois, Maryland, and Pennsylvania. 

  • Illinois: According to a new study published in JAMA Network Open, GLP-1 drugs may be associated with a modestly increased risk of developing optic nerve conditions. For the study, researchers analyzed data from more than 185,000 patients with type 2 diabetes and found that GLP-1 use was associated with a slightly elevated risk of developing diabetic retinopathy. However, there was not a statistically significant increase in risk of developing nonarteritic anterior ischemic optic neuropathy, a condition that causes sudden, painless vision loss in one eye. Both the American Academy of Ophthalmology and the North American Neuro-Ophthalmology Society have acknowledged potential vision changes linked to GLP-1s, emphasized continued monitoring, and said patients should not discontinue medication unless they experience sudden vision loss. (Murphy, Becker's Hospital Review, 8/12)
  • Maryland: FDA has approved the first-ever glucose monitoring system specifically for weight management. The system, which was developed by the startup Signos, includes an AI platform and an off-the-shelf continuous glucose monitor from Dexcom. It offers patients personalized, real-time data and lifestyle recommendations to help manage their weight. To access the system, patients can sign up for either a three-month plan or six-month plan, which cost $139 and $129 per month, respectively. Although the system is currently not covered by insurance, Signos said it is working with insurers and employers to get coverage for the system. "There is now a solution that everybody can use to help on the weight loss journey, and you don't have to be a certain number of pounds to use it. It's available for the average American who needs it," said Sharam Fouladgar-Mercer, Signos' cofounder and CEO. "The average person might have five pounds to lose, or others might have 100 pounds to lose. We are here to help them at any point in that journey." (Constantino, CNBC, 8/21)
  • Pennsylvania: Judge Mitchell Goldberg from Pennsylvania's Eastern District Court has ordered CVS Health to pay $289 million in damages as part of a long-running whistleblower lawsuit. In 2014, former Aetna employee Sarah Behnke filed a lawsuit against CVS Caremark, alleging that it had pushed insurers to submit inflated pharmaceutical claims to the federal government dating back as far as 2010. The lawsuit also alleged that Caremark paid other pharmacies like Rite Aid and Walgreens less for prescriptions. According to Fierce Healthcare, Behnke's lawsuit predated CVS' acquisition of Aetna, which was finalized in 2018. Initially, Goldberg set the initial damages in the case at $95 million but increased the amount to $289.9 million in his final judgment, including $285 million in actual damages and $4.9 million in civil penalties. Although the court found CVS liable for only two years of overbilling, Goldberg said the evidence shown during the trial made it clear that the company's actions were "financially motivated," which led him to triple the initial damages. According to a CVS spokesperson, the company intends to appeal the decision. The company is also facing a separate lawsuit in New York, where a federal jury determined that CVS' Omnicare division submitted over 3.3 million in fraudulent prescription claims between 2010 and 2018. The judge in that case has ordered CVS to pay almost $950 million in penalties and damages. (Minemyer, Fierce Healthcare, 8/20)

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