CVS Reimburses The MTA

Late Monday afternoon, the New York Daily News broke the story of CVS reimbursing the MTA almost $1M due to the company overcharging the transit agency for prescription drugs provided to current workers & retirees. Pete Donohue has more:

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 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.

Click here for the complete report.

I am glad to see the transit agency is more active in watching over their finances. Regardless of the financial times, it is their responsibility to make sure they are on the right side for all of their financial transactions. It is unfortunate that those who never can see positive when it comes to the MTA, are not applauding any money that is saved or properly returned.

xoxo Transit Blogger

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