Five New Jersey Pharmacies Settle for $1.935 Million Over Billing for Drugs Not Dispensed

Federal authorities allege pharmacies in Jersey City, Bayonne, and Elizabeth billed for prescriptions never dispensed to patients.

Five New Jersey pharmacies have agreed to pay a combined $1.935 million to settle allegations that they submitted false claims to federal health care programs for medications that were not actually dispensed. The resolution, announced by U.S. Attorney Alina Habba, involves pharmacies operating in Jersey City, Bayonne, and Elizabeth and addresses violations of the False Claims Act between 2020 and 2022.

According to the U.S. government’s assertions in the settlement agreements, inventory records showed that the pharmacies billed Medicare Part D and New Jersey Medicaid for significantly more medications than they had purchased from wholesalers, indicating that prescriptions were claimed without being filled.

The settlements include:

• 2818 JFK Pharmacy LLC (Jersey City): Agreed to pay $1,000,000 for claims submitted from January 2, 2020, to January 24, 2022.

• 518 Summit Care Pharmacy LLC (Jersey City): Agreed to pay $600,000 for claims submitted from January 2, 2020, to March 28, 2022.

• 1850 Greenville Pharmacy LLC (Jersey City): Agreed to pay $133,000 for claims submitted from January 2, 2020, to April 11, 2022.

• 327 Alexandria Pharmacy LLC (Elizabeth): Agreed to pay $101,000 for claims submitted from March 26, 2020, to April 2, 2022.

• 516 Broadway Care Pharmacy LLC (Bayonne): Agreed to pay $101,000 for claims submitted from January 2, 2020, to April 4, 2022.

The settlement follows a collaborative investigation by the U.S. Attorney’s Office for the District of New Jersey and the Department of Justice Civil Division’s Commercial Litigation Branch, Fraud Section. The pharmacies did not admit liability, and the claims resolved remain allegations only.

“All pharmacies that bill federal programs must ensure accurate billing and may not bill for medications they never dispensed. The Office will continue to pursue entities that fail in their essential responsibilities and engage in fraud, waste, or abuse.” - U.S. Attorney Alina Habba

The matter was handled by Assistant U.S. Attorneys Kruti Dharia and Robert Toll from the Health Care Fraud & Opioids Abuse Unit, alongside Senior Trial Counsel Jennifer Cihon from the DOJ’s Fraud Section.

This case underscores the federal government’s continued enforcement of the False Claims Act as a tool to combat healthcare fraud. Individuals with knowledge of potential fraud, waste, or abuse in federal healthcare programs are encouraged to report tips to the Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477).