A pharmacy in Union City has agreed to pay $995,420 to settle allegations that it improperly submitted claims to federal healthcare programs for medications that were never dispensed, U.S. Attorney Alina Habba announced today.
People’s Rx, Inc., also known as The People’s Pharmacy Shoppe, faced accusations of violating the False Claims Act by filing reimbursement requests with Medicare Part D and the New Jersey Medicaid Program for prescriptions that were allegedly never filled. The settlement addresses claims related to activities that took place between January 2, 2015, and January 24, 2022.
Federal investigators discovered that People’s Pharmacy’s inventory records did not match the volume of prescriptions it had billed for, raising concerns that the pharmacy had received payments for drugs it did not provide to patients.
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This resolution follows an extensive investigation led 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 overseen by Assistant U.S. Attorneys Robert Toll and Kruti Dharia, who are part of the Opioid Abuse Prevention and Enforcement Unit, as well as Senior Trial Counsel Jennifer Cihon from the Civil Division’s Fraud Section.
The settlement underscores the federal government’s continued efforts to tackle healthcare fraud under the False Claims Act, which is a critical tool for addressing fraudulent claims against government-funded programs. However, authorities noted that the settlement does not involve any admission of liability by People’s Pharmacy, nor has there been a court ruling confirming any wrongdoing.
The Department of Health and Human Services continues to urge the public to report any suspected healthcare fraud, waste, or abuse by calling 1-800-HHS-TIPS (800-447-8477).
