United States Attorney Richard G. Frohling announced today that Hayat Pharmacy agreed to pay $2,050,000 to resolve allegations that it submitted false claims to Medicare and Medicaid for prescription medications.
Hayat Pharmacy operates 23 pharmacy locations in the greater Milwaukee area. The United States alleged that Hayat Pharmacy submitted false claims to Medicare and Medicaid in 2019 for two prescription medications, a topical cream consisting of iodoquinol, hydrocortisone, and aloe, and a multivitamin with the trade name Azesco. During the relevant time period, Medicaid paid thousands of dollars per prescription for the iodoquinol-hydrocortisone-aloe cream, and Medicare paid hundreds of dollars per prescription for Azesco. The United States alleged that Hayat Pharmacy switched Medicaid and Medicare patients from lower cost medications to the iodoquinol-hydrocortisone-aloe cream and Azesco without any medical need and/or without a valid prescription. In addition to paying over $2 million to resolve the allegations concerning these false claims, Hayat Pharmacy agreed to conduct annual training concerning waste, fraud and abuse, and compliance with rules concerning medication switches.
“Medicare and Medicaid only pay for prescription medications that are needed by patients, not prescriptions dispensed by pharmacies simply to increase their profits,” said United States Attorney Frohling. “This settlement imposes a significant penalty on Hayat Pharmacy and will make the...
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