CVS diverted $66M in ‘secret pricing scheme,’ University of Michigan hospitals allege

UPDATE: This story has been updated with a comment from CVS Health.

DETROIT, MI – CVS Health and its subsidiaries allegedly diverted more than $66 million from Medicaid programming by giving incorrect prices to Michigan hospitals, according to a lawsuit filed Monday.

University of Michigan hospitals that are part of the 340B Pricing Program ― a federal program providing certain outpatient drugs at reduced prices ― are alleging CVS Health routinely reported receiving lower reimbursement rates from insurance companies, skimming roughly $66 million in revenue originally intended to fund hospitals serving underinsured patients…

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