Pharmacy to Pay $350k to Resolve Allegations of Billing Medicare for Undispensed Drugs

A Plus Pharmacy LLC settles False Claims Act allegations without admitting liability.

MANALAPAN, NJ – A New Jersey-based pharmacy will pay $350,000 to settle allegations that it violated the False Claims Act by billing Medicare Part D for medications it never actually dispensed, Acting U.S. Attorney Vikas Khanna announced. The settlement concludes a multi-year investigation into A Plus Pharmacy LLC, formerly operating as “A Plus Pharmacy,” and covers allegations of fraud from January 1, 2015, through February 27, 2023.

Allegations of Undispensed Prescriptions

According to the United States’ contentions in the settlement agreement, A Plus Pharmacy LLC submitted claims for certain prescription drugs but lacked the inventory to match the volume of medications billed. By comparing purchase records with claims submitted to Medicare Part D, investigators concluded that the pharmacy could not have dispensed the full quantities it claimed for reimbursement.

Coordinated Investigation

This resolution resulted from a collaboration between the U.S. Attorney’s Office for the District of New Jersey, the Justice Department’s Civil Division, and the Commercial Litigation Branch, Fraud Section. The U.S. Marshals Service also assisted. Prosecutors emphasize that the False Claims Act remains a key enforcement tool for confronting healthcare fraud, which can drive up medical costs and compromise patient care.

Government Representatives

Assistant U.S. Attorneys Robert Toll and Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit, together with Senior Trial Counsel Jennifer Cihon in the Civil Division’s Commercial Litigation Branch (Fraud Section), spearheaded the case on behalf of the government. Under the settlement, A Plus Pharmacy LLC has not admitted liability; the allegations remain disputed claims.

Ongoing Anti-Fraud Efforts

Officials stress the importance of vigilance against healthcare fraud, waste, and abuse. Anyone with relevant information or suspicions can contact the Department of Health and Human Services by calling 1-800-HHS-TIPS (800-447-8477). The False Claims Act empowers both law enforcement and private citizens—acting as whistleblowers—to combat illegal billing practices and protect public funds.

For further details on this settlement or the False Claims Act, please consult the U.S. Attorney’s Office or the Department of Justice website.