People’s Rx, Inc., operating as The People’s Pharmacy Shoppe in Union City, New Jersey, has agreed to pay $995,420. This payment resolves allegations that the pharmacy violated the False Claims Act by billing a federal health care program for medications it did not dispense. The announcement was made by U.S. Attorney Alina Habba.
The United States alleged that from January 2, 2015, to January 24, 2022, People’s Pharmacy submitted claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program, claiming to provide drugs that were not dispensed. Inventory records indicated the pharmacy had not purchased sufficient medications to match the prescriptions billed to the federal program.
The resolution resulted from cooperation between the U.S. Attorney’s Office in New Jersey and the Justice Department’s Commercial Litigation Branch, Fraud Section. Representing the government were Assistant U.S. Attorneys Robert Toll and Kruti Dharia, and Senior Trial Counsel Jennifer Cihon.
The government has focused on addressing healthcare fraud, utilizing the False Claims Act as a key tool. The public can report fraud, waste, abuse, or mismanagement to the Department of Health and Human Services using the number 1-800-HHS-TIPS (800-447-8477).
It should be noted that the claims settled are allegations and no liability determination has been made.