Indiana pharmacy settles Medicaid lawsuit

Drew Smith Oct. 23, 2008, 1:18pm

Steve Carter (R)

INDIANAPOLIS (Legal Newsline) -- A Gary, Ind.-based pharmacy has
agreed to pay a nearly $3,500 to settle claims it didn't follow
Medicaid procedures designed to limit certain recipients' access to
controlled substances.

Ranburn Drugs, a single-site pharmacy, allegedly improperly dispensed
prescriptions on 28 occasions to recipients who were subject to the
Restricted Card Program.

"Hoosiers need to be able to trust their pharmacies to dispense their
prescriptions honestly and legally," said Attorney General Steve
Carter. "I applaud the work of the Medicaid Fraud Control Unit for a
quick resolution to a potentially harmful situation."

The Restricted Card Program stipulates that certain Medicaid
recipients are limited to using only one doctor for their

Carter said Randburn allegedly changed the provider number of the physician to match the number of the patient's restricted physician in order to be covered by Medicaid.

The pharmacy has agreed to pay a civil penalty of $1,074.21 and
$1,262.13 for investigative costs.

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