Aug 20 (Reuters) - A federal judge ordered CVS Health's ( CVS )

pharmacy benefit manager unit to pay $289.9 million in

damages and penalties after it overcharged Medicare for

prescription drugs.

In a Tuesday decision, Chief Judge Mitchell Goldberg in

Philadelphia federal court tripled to $285 million the damages

he had ordered CVS Caremark to pay in June, citing the federal

False Claims Act. He added a $4.87 million civil fine.

Goldberg rejected CVS' request to pay less, saying that

while CVS Caremark was liable for only two years of overbilling,

evidence at trial "made clear that the fraud was financially

motivated, not the result of some innocent or mistaken belief."

CVS, based in Woonsocket, Rhode Island, said on Wednesday it

plans to appeal.

Last month, a Manhattan federal judge ordered CVS' Omnicare unit

to pay $948.8 million in a separate whistleblower lawsuit

alleging fraudulent billing. CVS plans to appeal that judgment.

Goldberg presided in March over a non-jury trial in the

whistleblower case brought by Sarah Behnke, a former head

actuary for Medicare Part D at Aetna.

She accused CVS Caremark of having caused health insurers

such as Aetna to submit inflated claims since 2010 to the

Centers for Medicare and Medicaid Services (CMS), while

pharmacies such as Rite Aid and Walgreens were paid

less.

CVS argued that the original $95 million in damages was

substantial, and punitive damages should be limited to $95

million.

But the judge said CVS Caremark's fraud not only financially

harmed the government, but diminished public confidence in it.

"CMS relies on companies like Caremark to truthfully and

accurately report Part D drug prices," he wrote. "Caremark's

conduct broke CMS's trust, and as a result, the public's trust

in CMS."

Behnke sued in 2014. CVS bought Aetna four years later.

The False Claims Act lets whistleblowers sue on behalf of

the government and share in recoveries, typically 15% to 30%.

The case is US ex rel Behnke v CVS Caremark Corp et al, U.S.

District Court, Eastern District of Pennsylvania, No. 14-00824.