CVS pays $17.5 million to resolve Medicaid problems

* CVS overbilled for prescription drugs

* Whistleblower will receive $2.6 million

WASHINGTON, April 15 (Reuters) - CVS Caremark Corp (CVS.N), which runs 7,000 pharmacies, has agreed to pay $17.5 million to resolve claims that it overbilled Medicaid, the Justice Department said on Friday.

CVS ran into trouble with Medicaid programs in 10 states when it overbilled the government for prescription drugs, according to the Justice Department.

The department declined to specify the amount by which the government was overbilled.

The case was brought to the Justice Department by a whistleblower in Minnesota, who will receive $2.6 million.