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AG Gansler Recovers $20,000 in Settlement with Rite Aid of Maryland
Retailer kept drugs and Medicaid funds after prescriptions were returned

Baltimore, MD (February 6, 2014) -Attorney General Douglas F. Gansler announced today that Maryland has reached a settlement agreement with Rite Aid of Maryland, Inc., resolving allegations that the pharmaceutical retailer had a practice of keeping both the payments and the prescriptions that had been returned as "undeliverable." Under the agreement, Rite Aid will pay $20,000 to the Maryland Medicaid Program, a portion of which will be shared with the federal government.

"Whether these actions were intentional or just sloppy, the patients who need these treatments and the taxpayers deserve better," said Attorney General Gansler. "We've secured these funds so they can be used to treat Maryland patients and send a message that, willful or not, such practices will not be tolerated."

The agreement resolves allegations that from May 2010 through October 2011, Rite Aid of Maryland mailed prescriptions to patients without confirming their mailing addresses. Some of the prescriptions were returned to Rite Aid as undeliverable, but payments for all returned prescriptions were not refunded to the Maryland Medicaid Program.

In making the announcement, Attorney General Gansler thanked Medicaid Fraud Control Unit Deputy Director Shelly Marie Martin and Medicaid Fraud Control Unit Chief Auditor Ruth Jarrell for their work on this case.


Attorney General of Maryland 1 (888) 743-0023 toll-free / TDD: (410) 576-6372
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