WellPoint Plans Reorganization; CVS Denies Knowledge Of Drug Refill Investigation
Health insurer WellPoint plans a reorganization under its new interim CEO, while CVS officials say they are unaware of a government probe of prescription refill practices, which was originally reported by the Los Angeles Times.
Bloomberg News/Los Angeles Times: WellPoint To Reorganize Into 4 Units
Health insurer WellPoint Inc. will reorganize into four business units in the first major move undertaken by interim Chief Executive John Cannon. In a memo sent to employees Friday, Cannon said the changes will help smooth the integration of Amerigroup Corp., the insurer Indianapolis-based WellPoint agreed to buy in July for $4.9 billion. The reorganization will put Amerigroup CEO James Carlson in charge of the combined company's Medicaid business, while Chief Financial Officer Wayne DeVeydt remains in his job (10/12).
Reuters: CVS Unaware Of Any Government Prescription Refill Probe
CVS Caremark Corp said on Friday it has not been contacted by the U.S. government regarding alleged claims the drugstore chain refilled prescriptions and sought reimbursement for them without the approval of patients. According to a report in the Los Angeles Times, which quotes an unnamed official with knowledge of the matter, the Office of the Inspector General (OIG) for the U.S. Department of Health and Human Services is investigating such allegations as part of efforts to stem fraud against the government's Medicare health plan for the elderly (Alawadhi, Wohl and Morgan, 10/12).