Nashville drug company to pay $7.8M for billing deceased clients

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Nashville (Tenn.) Pharmacy Services agreed to pay the federal government $7.8 million to resolve allegations it charged Medicare and TennCare for medications for dead patients, according to the Department of Justice.  

The settlement resolves claims that Nashville Pharmacy Services submitted false claims to Medicare and TennCare for medications for patients after they had died, and billed for medications for 22 people who did not have prescriptions. Allegations also included improper copayment management and automatic medication renewal without proper approval, among others.   

Marsha McCullough, a former order entry technician at Nashville Pharmacy Services, brought claims of wrongdoing under the qui tam provision of the False Claims Act. Ms. McCullough could receive up to $1.4 million from the settlement.

"We remain committed to working with our state and federal partners to hold those accountable who attempt to profit at the expense of taxpayers and compromise the integrity of our health care programs," said U.S. Attorney David Rivera.

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