Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Bloomberg, “CVS Health Corp. and Walgreens Boots Alliance Inc. were sued by California customers who accused the drugstore operators of charging co-payments for certain prescription drugs that exceed the cost of medicines.”
Questions:
1. What do Schultz’s and Grabstulz’s lawsuits claim in specific terms?
2. Cases have also been filed against which health insurance companies?
3. What is a clawback?
4. Where have the cases been filed?
5. What is a co-pay and how should each pharmacy account for just one of the prescriptions mentioned?
6. Do you consider this to be a fraud?
Source:
Feely, j. and J.S. Hopkins. (2017). CVS Health Is Sued Over ‘Clawbacks’ of Prescription Drug Co-Pays. Bloomberg, August 5 (Retrievable online at https://www.bloomberg.com/news/articles/2017-08-08/cvs-health-is-sued-over-clawbacks-of-prescription-drug-co-pays)