( CNN ) Washington -- The nationwide retail pharmacy chain CVS has agreed to pay the federal and several state governments more than $ 17 million to settle claims the pharmacy overcharged Medicaid . CVS , with 7,000 pharmacies in 41 states , allegedly submitted inflated prescription claims in 10 states . The case against CVS was originally brought by a CVS whistleblower pharmacist in Minnesota . The government said that pharmacist will receive more than $ 2.5 million , which will come from what the states and the federal government recover from CVS . The federal government will receive nearly $ 8 million , and the 10 states will receive a total of $ 9.5 million . Those states are California , Florida , Indiana , Massachusetts , Michigan , New Hampshire , Nevada , Rhode Island , Alabama and Minnesota . Officials said CVS was paid a higher amount by Medicaid than it would have been paid if the company had followed correct billing procedures and submitted the claims to third-party insurers . `` Medicaid covers the poorest , most vulnerable people in American society . This needed government program for prescriptions is a disservice to everyone and wo n't be tolerated , '' said Daniel Levinson , inspector general of the U.S. Department of Health and Human Services . CVS issued no immediate comment , but the Justice Department said the retailer agreed to three years of government monitoring as it implements correct billing procedures .
Pharmacy chain accused of inflating prescription claims in 10 states . Case was brought by a whistleblower pharmacist , who will get more than $ 2.5 million . Comment: Justice Department says CVS has agreed to monitoring as it corrects its billing procedures .