04:12 PM EDT, 08/27/2025 (MT Newswires) -- CVS Health ( CVS ) has reached a $12.25 million settlement with the Massachusetts Attorney General's Office, over allegations that the pharma company overcharged the state's Medicaid program, MassHealth, for prescription drugs, the Office of Attorney said Wednesday.

As per the settlement, the company, apart from the fee, will now also implement an annual reconciliation process to ensure accurate pricing of drugs for MassHealth.

CVS faced allegations in an April lawsuit that it offered lower prices to cash-paying customers via a discount program, but had not extended the same to MassHealth, leading to violation of the state's Medicaid pricing regulations.