61° and Sunny
NJ Pharmacy to Pay Nearly $1M to Resolve Allegations of False Billing to Medicare and Medicaid
People’s Rx, Inc. allegedly submitted claims for unfilled prescriptions over a seven-year period, violating the False Claims Act.
A Union City pharmacy has agreed to pay $995,420 to resolve allegations that it improperly billed federal healthcare programs for medications it never dispensed, U.S. Attorney Alina Habba announced.
People’s Rx, Inc., doing business as The People’s Pharmacy Shoppe, was accused of violating the False Claims Act by submitting reimbursement claims to Medicare Part D and the New Jersey Medicaid Program for prescriptions that were never filled. According to the settlement agreement, these activities allegedly took place between January 2, 2015, and January 24, 2022.
Federal authorities contend that People’s pharmacy inventory records did not show sufficient drug purchases to account for the volume of prescriptions it billed. This discrepancy indicated that the pharmacy may have received payment for medications it never provided to beneficiaries.
The resolution stems from a coordinated investigation conducted 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 case was handled by Assistant U.S. Attorneys Robert Toll and Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Jennifer Cihon from the Civil Division’s Fraud Section.
The settlement reflects the federal government’s ongoing focus on combating healthcare fraud through the enforcement of the False Claims Act, a primary legal mechanism for addressing fraudulent claims for government funds. Authorities emphasized that the allegations resolved by this agreement remain civil in nature and there has been no admission of liability or court determination of wrongdoing.
The Department of Health and Human Services continues to encourage the public to report potential fraud, waste, or abuse by calling 1-800-HHS-TIPS (800-447-8477).
