CareMed Pharmaceutical Services settles False Claims Act case for $10M

Lake Success, N.Y.-based CareMed Pharmaceutical Services has agreed to pay $10 million to resolve allegations it submitted false claims for automatic refills of drugs that were not actually received by patients and their physicians, according to the Department of Justice.

In its complaint, the government alleged CareMed was able to secure prior authorization for drug coverage from insurance companies by making false statements. The government alleged CareMed fabricated Medicare beneficiaries' medical information and posed as representatives of prescribing physicians' offices when calling insurers to obtain the settlement custom

The government further alleged CareMed double billed by re-stocking unused dosages of certain drugs and then re-selling those drugs and re-billing insurance companies that provide prescription drug coverage to Medicare beneficiaries.

Of the settlement proceeds, $9.53 million will go to the U.S., and the remaining $465,423 will go to the state of New York.

Although CareMed has agreed to settle the allegations brought in the government's complaint, there has been no admission of wrongdoing.

More articles on the False Claims Act:

Clinical Lab Partners settles False Claims Act case
10 latest healthcare industry lawsuits, settlements
DOJ Criminal Division to more heavily scrutinize whistle-blower complaints 

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