Feds Charge 48 in Alleged New York Medicaid Fraud Ring

Federal officials have charged 48 people across five states for their alleged participation in a massive fraud scheme that cost Medicaid roughly $500 million.

The defendants allegedly ran a black market for prescription drugs that had previously been dispensed to Medicaid recipients in the New York City area. Medicaid recipients then sold them as second-hand drugs to collection and distribution channels, which ultimately funneled the drugs to pharmacies for resale to consumers. The drugs were non-controlled substances for various illnesses, including HIV, schizophrenia and asthma.

The defendants profited by exploring the difference between cost to the patients who obtained the drugs through Medicaid and the hundreds of dollars — sometimes upwards of $1,000 — pharmacies paid per bottle of drugs.

Defendants were arrested in New York, New Jersey, Pennsylvania, Massachusetts, Florida and Texas. Charges range, but a table of the defendants names, ages, charges and maximum penalties can be found in the press release.

More Articles on Medicaid Fraud:

GAO: Medicaid Fraud Audits Cost 5 Times What They Recover
10 States With the Most Medicaid Fraud Investigations, Convictions
Government Recovers $4.1B From Healthcare Fraud in 2011


Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars