Report: CVS to pay $858K over inflated Rx claims in Indiana
Indianapolis — Indiana Attorney General Greg Zoeller says the state will get $858,000 from CVS Pharmacy to settle allegations that the company overcharged Medicaid programs, the Associated Press reported.
The amount represents Indiana’s share of a $17.5 million settlement reached last week with 10 states and the federal government.
The Justice Department says the settlement resulted from an investigation into claims CVS collected more than it should have from Medicaid for filling prescriptions for people who have other insurance as well. Typically, pharmacies can only bill Medicaid for the amount of a patient’s co-payment in those situations.
Zoeller said Thursday the total state settlement paid to the Indiana Medicaid program will be $858,176, including $572,117 for the state’s share of Medicaid restitution and $286,058 for additional recoveries.
Comps not stirring up The Shack
FORT WORTH, Texas — A decline in T-Mobile postpaid wireless sales, television converter boxes, digital televisions and digital music players contributed to a first-quarter comps drop of 0.6% at RadioShack. However, strong sales in its kiosk division helped drive RadioShack’s total first-quarter sales up 2.1% to $1.06 billion, compared with $1.04 billion for the 2010 first quarter.
Net income for the first quarter declined to $35.1 million, or 33 cents per diluted share, compared with net income of $50.1 million, or 39 cents per diluted share, reported for the same period last year.
Jim Gooch, president and CFO, said, "Despite a challenging economy and tough weather conditions, our first-quarter results were generally in line with our internal expectations. We expect the softness in our business to continue during the second quarter before we begin to see the benefits of our merchandising and sales initiatives improving both revenue and income trends in the back half of the year. In addition, growth in our mobility business will be aided by our tablet computer offerings, which are being introduced this month."
RadioShack currently expects full-year 2011 diluted EPS to be in the range of $1.60 to $1.80 per share (previous guidance was for full-year 2011 diluted EPS in the range of $1.60 to $1.90). RadioShack continues to expect total net sales and operating revenues will increase in the low- to mid-single-digit percent range in 2011.
PetSmart outfits dogs with help from Martha Stewart
PHOENIX — PetSmart announced that is introducing an exclusive line of pet apparel and accessories from Martha Stewart.
“Dogs love their walks — rain or shine. But the spring season can bring with it a few challenges for pets and their parents when it comes to enjoying outdoor activities,” said Gayle Franger, VP merchandise marketing for PetSmart. “With quality clothing options that protect dogs from the elements, PetSmart is helping pet parents keep their pets comfortable, regardless of the weather forecast.”
The Martha Stewart Pets line will include a rain coat, twill trench coat, windbreaker and three-piece bowl set.