Settlement resolves allegations that PharmaHealth Pharmacy billed the state Medicaid program for medically unnecessary, overpriced multivitamins.
BOSTON — The Massachusetts Attorney General’s Office today announced a $464,205 settlement with PharmaHealth Pharmacy Inc., a New Bedford retail pharmacy, to resolve allegations that it submitted false claims to MassHealth for an expensive prescription multivitamin that was often not medically necessary.
Under the agreement, PharmaHealth will pay the Commonwealth $464,205 — three times the amount of the alleged overpayments — and will implement a three-year independent compliance and monitoring program at its own expense.
The settlement resolves allegations that, at the direction of its owner, PharmaHealth deliberately targeted the most expensive multivitamin covered by MassHealth — DermacinRx Multitam (“DermacinRx”) — and solicited prescriptions for it from physicians, even when cheaper alternatives were readily available and the product was not medically necessary for many patients.
MassHealth reimburses prescription drugs only when they are deemed medically necessary and meet all federal and state requirements. The Attorney General’s Office alleges that between March and September 2024, PharmaHealth engaged in a scheme to maximize reimbursements by steering patients toward this high-cost option. The investigation was initiated following a referral from MassHealth.
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