$1.3M in CVS overcharges coming back to cities, towns; Attorney general, pharmacy file $2.65M settlement in court.

• Position: LOCAL NEWS

Byline: George Barnes

Cities and towns across the state are enjoying a bit of a bonus from a settlement made between CVS Pharmacy Inc. and state Attorney General Martha Coakley's office.

An agreement, made in lieu of civil action against CVS, was made to repay the state and 200 cities and towns $2.65 million after Mrs. Coakley's office discovered cases of alleged overcharging by CVS for medication to municipal workers out on workers' compensation.

Ryan McNutt, chief of staff for Fitchburg Mayor Lisa A. Wong, said the city has learned it will receive about $17,948 from the agreement.

Because Fitchburg's health trust fund is self-insured, the money received from the restitution will go directly back into that fund to reimburse the extra money paid out through claims that were filed.

"We really appreciate the work Martha Coakley and her office is doing for cities and towns in helping keep every penny owed to them," said Mr. McNutt. "Health care costs are one of the biggest budgetary burdens and this is very welcome news to have this money returned."

The attorney general's office entered into an agreement in August with the pharmacy chain after an investigation revealed that the company was overcharging public entities for prescription drugs under the workers compensation insurance system. Under the terms of the settlement, filed late last week in Suffolk Superior Court, CVS will make payments totaling $2.65 million to the state and about...