MILWAUKEE, Wis. (WFRV) – A pharmacy chain in Wisconsin that has over 20 locations has agreed to pay over $2 million to resolve allegations that it submitted false claims for certain medications.
According to authorities, Hayat Pharmacy agreed to pay $2,050,000 to resolve allegations that it submitted false claims to Medicare and Medicaid for prescription medications. It was alleged that Hayat Pharmacy submitted false claims to Medicare and Medicaid in 2019 for two prescription medications.
The two medications were a topical cream consisting of iodoquinol, hydrocortisone and aloe and a multivitamin with the trade name Azesco.
Over the time frame of the allegations, Medicaid reportedly paid thousands of dollars per prescription for the cream and Medicare paid hundreds of dollars per prescription for Azesco. The allegations said that Hayat Pharmacy switched Medicaid and Medicare patients from lower-cost medications to the other two medications without any medical need and/or without a valid prescription.
In addition to paying over $2 million, Hayat Pharmacy reportedly agreed to conduct annual training concerning waste, fraud and abuse and compliance with rules concerning medication switches.
“Our watchdog agency will hold accountable pharmacies who try to boost their profits by billing federal health care programs for medically unnecessary medications,” said Special Agent in Charge Mario M. Pinto, HHS-OIG, Chicago Region.
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