June 28, 2004
AID AGREES TO REIMBURSE MARYLAND MEDICAID MORE THAN $148,000
Attorney General J. Joseph Curran, Jr. and The National Association
of Medicaid Fraud Control Units (NAMFCU) announced today that 30
state Medicaid Programs recovered over $6.6 million dollars as
a result of a settlement with Rite Aid Corporation. Rite Aid, a
national retail pharmacy chain, agreed to pay a total of $7 million
to the federal and state governments to settle allegations under
the federal False Claims Act. The total recovery also includes
funds recovered by other federally funded health insurance programs.
is alleged to have dispensed partial or “short” prescriptions
due to insufficient stock and returned unfilled medications to
stock, but received full payment from government health insurance
programs (Medicaid, Tricare, and the Federal Employee Health Benefit
program.) Medicaid is a program jointly funded by federal and state
governments that provides health insurance benefits for eligible
low income beneficiaries. The state of Maryland’s Medicaid
Program will recover a total of $36,995.38. The total Maryland
Medicaid recovery, including both federal and state share is $148,504.46.
National Association of Medicaid Fraud Control Units, representing
the 47 state Medicaid Fraud Control Units and the District of Columbia,
worked closely with numerous federal agencies, including the United
States Department of Justice, and the Office of Inspector General
(OIG) of the United States Department of Health and Human Services
(HHS), to reach this global settlement. The agreement covers the
time period of January 1, 1997 to December 31, 2001 and settles
a dispute with Rite Aid originally brought in federal court in
Pennsylvania and South Carolina.
The Rite Aid settlement includes a Corporate Integrity Agreement
(CIA) that will be administered by the HHS/OIG. The Corporate Integrity
Agreement requires the company to modify its pharmacy billing operations
to ensure future compliance with applicable laws and Medicare and
Medicaid regulations, to monitor these practices for problems,
and establishes sanctions for any violations.
of Medicaid Fraud Control Units negotiating team members are
the Directors of the New Hampshire, North Carolina,
and Pennsylvania MFCU’s.