NEWARK, N.J.
— Five pharmacies operating in Jersey City, Bayonne, and Elizabeth have agreed to pay a total of $1,935,000 to resolve allegations that they submitted false claims to federal health care programs for medications that were never actually dispensed, U.S. Attorney Alina Habba announced Wednesday.
According to the settlement agreements, the pharmacies allegedly billed the Medicare Part D Program and the New Jersey Medicaid Program for prescriptions that were not supported by corresponding wholesale inventory purchases. The discrepancies led federal investigators to conclude the medications were never provided to beneficiaries.
“All pharmacies that bill federal programs must ensure accurate billing and may not bill for medications they never dispensed,” U.S. Attorney Habba said in a statement. “The Office will continue to pursue entities that fail in their essential responsibilities and engage in fraud, waste, or abuse.”
Details of individual settlements
-
2818 JFK Pharmacy LLC
agreed to pay
$1,000,000
to resolve allegations covering the period from January 2, 2020, through January 24, 2022. -
518 Summit Care Pharmacy LLC
agreed to pay
$600,000
for conduct between January 2, 2020, and March 28, 2022. -
1850 Greenville Pharmacy LLC
agreed to pay
$133,000
for similar conduct between January 2, 2020, and April 11, 2022. -
327 Alexandria Pharmacy LLC
agreed to pay
$101,000
for claims submitted between March 26, 2020, and April 2, 2022. -
516 Broadway Care Pharmacy LLC
also agreed to pay
$101,000
for conduct between January 2, 2020, and April 4, 2022.
Each pharmacy was accused of causing the submission of reimbursement claims for drugs they failed to dispense, in violation of the False Claims Act.
Federal effort targets healthcare fraud
The settlements stem from a coordinated investigation by the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section. The matter was handled by Assistant U.S. Attorneys Kruti Dharia and Robert Toll, and Senior Trial Counsel Jennifer Cihon.
The False Claims Act remains a key legal tool in combating healthcare fraud, with the Department of Health and Human Services encouraging the public to report tips at 1-800-HHS-TIPS (800-447-8477).
