Med-Fast Pharmacy will pay $2.66 million to settle a False Claims Act case in which the company was charged with submitting claims for medications to Medicare which were not eligible for coverage. The whistleblowers said that the medications for which claims were submitted to the government were either recycled from long-term care facilities or that otherwise differed from the medications identified as part of the claims submitted for reimbursement. In addition, Med-Fast was alleged to have submitted claims to Medicare and Medicaid for diabetes testing strips in the more expensive retail packaging when cheaper mail order packaged test strips were actually supplied.
Under the settlement agreement, the DOJ will continue criminal charges against individual actors involved in the conduct. The case demonstrates the government’s commitment to hold individuals accountable for corporate actions.
Jeffrey Newman represents whistleblowers.