Rite Aid pays $2.99M for allegedly using gift cards to get Medicare, Medicaid business

Camp Hill, Pa.-based retail drugstore chain Rite Aid has paid the government $2.99 million to resolve allegations it improperly used gift cards as inducements to Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid pharmacies in violation of the False Claims Act, according to the Department of Justice.

Acting U.S. Attorney for the Central District of California Stephanie Yonekura said, "This settlement holds Rite Aid accountable for exerting undue influence on individuals when they make important healthcare decisions about where and when to fill prescriptions."

The lawsuit was originally filed under the qui tam, or whistle-blower provisions, of the False Claims Act. Jack Chin, the whistle-blower in the case, will receive approximately $508,300 of the settlement, according to the report.

Although Rite Aid agreed to this settlement, there was no determination of liability in the case.

More articles on healthcare industry lawsuits and settlements:

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Trends in hospital professional liability claims: 5 things to know
Recent case law extends Stark Law to Medicaid

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