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Whistleblower suit against Caremark expands

The Medicaid fraud suit against Caremark, one of the nation’s largest pharmacy benefit managers, could have damages in excess of $500 million, according to a newly expanded whistleblower suit.

Five states have joined with the federal government in an effort to recover money from Caremark, and others are considering joining.

The False Claims Act suit alleges that Caremark defrauded Medicaid by improperly rejecting claims from Medicaid, the Indian Health Service, the Veterans Administration and other government programs.

The Street.com‘s August 29, 2005 described developments.

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