People’s Rx, Inc., operating as The People’s Pharmacy Shoppe, based in Union City, New Jersey, has agreed to a financial settlement to resolve allegations of False Claims Act violations. The pharmacy agreed to pay $995,420 after allegations surfaced that it billed a federal health care program for medications it never provided. This announcement was made by U.S. Attorney Alina Habba.
The United States alleged that between January 2, 2015, and January 24, 2022, the pharmacy submitted false claims to the Medicare Part D Program and the New Jersey Medicaid Program. It was contended that the pharmacy's inventory records did not show sufficient medication purchases from wholesalers to satisfy the claimed prescriptions.
This resolution was achieved through a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section. The government is represented in this case by Assistant U.S. Attorneys Robert Toll and Kruti Dharia, along with Senior Trial Counsel Jennifer Cihon.
The pursuit of this case highlights the government's ongoing efforts to combat healthcare fraud, primarily using the False Claims Act as a critical tool. Potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services via the hotline at 1-800-HHS-TIPS (800-447-8477).
It is important to note that the claims resolved by the settlement are merely allegations, and there has been no official finding of liability.
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