CVS reimburses MTA almost $1M after overcharging transit workers, retirees

Drugstore giant CVS overcharged the MTA for prescription drugs provided to transit workers and retirees - and has reimbursed the agency nearly one million dollars, transit officials said Monday.
Metropolitan Transportation Authority officials say that figure could rise as the MTA auditor general continues to pore over records pertaining to CVS Caremark and its contract with NYC Transit, the bus and subway division.
MTA Inspector General Barry Kluger's office has launched a "second and independent" probe, according to a letter from Kluger to a confederation of seven labor unions
The group has been very critical of the company's management of worker benefit programs around the country.
"Certainly, the issues involved are very serious," Kluger wrote.
CVS Caremark is the largest drugstore chain in the country. It also manages pharmaceutical benefits provided by employers like NYC Transit.
MTA spokesman Jeremy Soffin said CVS Caremark had provided generic drugs to transit workers, retirees and their families as part of the health plans with the unionized workforce - but didn't apply the proper discount for the cheaper medications.
The auditor general discovered discrepancies in 2007 and issued an internal report about possible over billing, Soffin said.
As a result, the MTA hired an outside auditing and consulting firm to scrutinize the books for a two-year period ending in March of last year, the first two years of the contract with CVS Caremark.
The company paid the MTA $710,000 last year and reimbursed the agency for another 231,000 earlier this month, he said.
The contract between CVS and the MTA expires in August abd the agency Monday approved replacing CVS and two other drug plan providers with new contractor.
"This is good for riders, for Transit Authority finances and for MTA employees," Ahmer Qadeer of Change to Win.
"The MTA's actions show they are serious about saving money and achieving accountability on prescription drug costs." Change to Win includes the Service Employees International Union, the Teamsters and United Farm Workers.http://www.nydailynews.com/ny_local/2009/06/22/2009-06-22_cvs_reimburses_mta.html#ixzz0K9Jtq5WO&D