In one of the first False Claims Act settlements involving Medicare’s Prescription Drug Program, a subsidiary of CVS Caremark Corp., RXAmerica, agreed to pay $5.25 million to settle claims of false prescription drug pricing, according to the Washington Post.

The settlement will resolve two separate lawsuits from 2008-2009 against CVS in Woonsocket, Rhode Island. Federal investigators said RXAmerica had given false data regarding their prices of prescription drugs.

The issue arose when RXAmerica advertised false pricing on Plan Finder, a website where senior citizens can estimate their prescription drug expenses. However, the actual prices offered by the company were significantly higher than indicated on the website.

“Those navigating our Medicare system deserve accurate information so they can make informed choices and obtain the benefits to which they are entitled,” said Loretta Lynch, U.S. Attorney for the Eastern District of New York. Read More…

Similar to the settlement against CVS  earlier this year, this agreement is part of the government’s initiative to combat health care fraud.