Earlier this year, the United States Department of Justice (DOJ) announced a $2.05 million settlement with Milwaukee pharmacy chain Hayat Pharmacy over allegations that the pharmacy submitted false claims to Medicare and Medicaid for prescription medications.
The government alleged that Hayat Pharmacy submitted false claims to Medicare and Medicaid in 2019 for two different prescription medications: a topical cream made of iodoquinol, hydrocortisone, and aloe, and Azesco, a multivitamin. Allegedly, Hayat switched Medicare and Medicaid patients from lower cost medications to the more expensive cream and Azesco without a documented medical need and/or without a valid prescription. During the relevant time period, Medicaid paid thousands of dollars per prescription for the cream and Medicare paid hundreds of dollars per each Azesco prescription.
The money from the settlement will be divided between the state and federal governments. The state of Wisconsin, where Hayat is based, will receive a little more than 34% of the payments or roughly $700,000, including $342,000 in restitution. The federal government will receive nearly $1.35 million, with roughly $242,000 going to the former pharmacist who brought the initial complaint. Hayat will make roughly $1 million in payments this year with the remainder of the payments stretched over four installments through Dec. 1, 2024.
In addition to the $2,050,000 settlement, Hayat agreed to host annual training sessions for pharmacy...
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