GEICO Alleges Brooklyn Pharmacy Billed $2,752 for $10 Pain Patches
www.Insurancebusinessmag.com, Tez Romero, Nov. 04, 2026
What happened: GEICO alleges a Brooklyn pharmacy billed $3.7 million in no-fault claims for two pain products over 17 months through kickback-driven prescribing arrangements
Who’s involved: GEICO (plaintiff) and a Brooklyn pharmacy operating as 13th Avenue Chemists, its owner, and an associated physician
What’s at stake: approximately $1.855 million GEICO says it has already paid; plus $1.565 million in pending claims it says it should not have to pay
Why it matters: the complaint maps a specific no-fault pharmacy fraud playbook – product targeting, pricing manipulation, and piecemeal collection tactics – that claims and SIU teams across the auto insurance sector are likely to encounter
Where it stands: complaint filed November 3, 2026, in the US District Court for the Eastern District of New York
A Brooklyn pharmacy allegedly billed $2,751.84 per prescription for pain patches that sell over the counter for as little as $10.
That pricing gap sits at the center of a federal lawsuit filed November 3, 2026, in which GEICO alleges a pharmacy operating as 13th Avenue Chemists ran a scheme to exploit New York’s no-fault insurance system. The insurer says the pharmacy submitted more than $3.7 million in claims for products that were medically unnecessary and, in some cases, not even eligible for reimbursement.
GEICO filed the complaint in the US District Court for the Eastern District of New York. The suit names the pharmacy’s corporate entity, BHNV Exclusive Inc., its owner, and an associated physician, along with unidentified individuals the insurer says participated in the alleged scheme.
Two products, 96% of the billing
According to the complaint, approximately 96% of the pharmacy’s no-fault billing to GEICO was concentrated on just two topical pain products: Diclofenac Sodium 2% Solution, billed at $4,299.01 per prescription, and LidoReal 4%-1% Patches, billed at $2,751.84 per prescription. Continue article