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Rite Aid Resolves FCA Allegations

December 10, 2014

Thanks to a False Claims Act (FCA) lawsuit filed pursuant to the qui tam provisions of the Act by Jack Chin, Rite Aid Corporation (Rite Aid) has agreed to pay the United States $2.99 million to resolve allegations that it violated the FCA by inappropriately using gift cards to induce Medicare and Medicaid beneficiaries to transfer their prescriptions to Rite Aid.  According to a Department of Justice press release, Chin will receive approximately $508,300 of the settlement for his involvement.  Patricia Stamler and Phil Benson of the law firm of Hertz Schram PC represented Mr. Chin.

“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.  “Pharmacy chains that manipulate patient choices in this way will be held accountable.”

To report Medicare fraud, please contact Frohsin & Barger.

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