Rite Aid Corporation Pays $2.99 Million to Settle False Claims Act Allegations
of Using Gift Cards to Induce Medicare and Medicaid Business
Qui Tam Whistleblower Will RECEIVE OVer $500,000 of the SETTLEMENT proceeds
Seattle Whistleblower Attorneys report that Rite
Aid Corporation paid the United States $2.99 million to resolve allegations that it
violated the False Claims Act by inappropriately using gift cards as
inducements.
The settlement resolves allegations that Rite Aid offered illegal
inducements to Medicare and Medicaid beneficiaries to transfer their
prescriptions to Rite Aid pharmacies. The government alleged that from
2008 to 2010, Rite Aid had knowingly and improperly influenced the
decisions of Medicare and Medicaid beneficiaries to transfer their
prescriptions to Rite Aid pharmacies by offering them gift cards in
exchange for their business.
“This case demonstrates the government's ongoing commitment to enforcing accountability, transparency and fairness in the retail pharmacy industry,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “The government will continue to advocate for the best interests of Medicare and Medicaid patients, and prevent pharmacies from improperly manipulating their healthcare choices.”
“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,” said Acting U.S. Attorney Stephanie Yonekura for the Central District of California. “Corporate profit should never steer an individual away from making the right healthcare decision.”
“Pharmacies are not allowed to improperly influence the decision-making of Medicare and Medicaid patients about where to fill prescriptions,” said Special Agent in Charge Glenn R. Ferry for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Pharmacy chains that manipulate patient choices in this way will be held accountable.”
The settlement resolves allegations filed by Jack Chin under the qui tam, or whistleblower provisions of the False Claims Act, which authorizes private parties to sue for fraud on behalf of the United States and share in the recovery. Chin will receive approximately $508,300 of the settlement.
The claims settled by today’s agreement are allegations only and there has been no determination of liability.
Source: Dept. of Justice
“This case demonstrates the government's ongoing commitment to enforcing accountability, transparency and fairness in the retail pharmacy industry,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division. “The government will continue to advocate for the best interests of Medicare and Medicaid patients, and prevent pharmacies from improperly manipulating their healthcare choices.”
“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,” said Acting U.S. Attorney Stephanie Yonekura for the Central District of California. “Corporate profit should never steer an individual away from making the right healthcare decision.”
“Pharmacies are not allowed to improperly influence the decision-making of Medicare and Medicaid patients about where to fill prescriptions,” said Special Agent in Charge Glenn R. Ferry for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Pharmacy chains that manipulate patient choices in this way will be held accountable.”
The settlement resolves allegations filed by Jack Chin under the qui tam, or whistleblower provisions of the False Claims Act, which authorizes private parties to sue for fraud on behalf of the United States and share in the recovery. Chin will receive approximately $508,300 of the settlement.
The claims settled by today’s agreement are allegations only and there has been no determination of liability.
Source: Dept. of Justice