Maryland Long Term Care Pharmacy Pays $5.3M to Settle Allegations of Billing for Drugs Without Valid Prescriptions

Remedi SeniorCare Holding Corporation (Remedi), headquartered in Towson, Maryland, has agreed to pay over $5.3 million to the United States to resolve allegations that it violated the False Claims Act (FCA) by billing the Medicare and Medicaid programs for prescription drugs despite lacking valid prescriptions. The settlement is based on Remedi’s ability to pay and will be paid over time.

The United States alleged that, from Jan. 1, 2015 through March 31, 2021, Remedi submitted false claims to the Medicare and Medicaid programs for prescription drugs that lacked valid prescriptions and were dispensed to residents of assisted living facilities in various states. 

“When pharmacies dispense drugs without valid prescriptions, they undermine both patient safety and the integrity of vital federal healthcare programs,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s resolution demonstrates the Department’s commitment to protecting vulnerable populations and holding accountable pharmacies that fail to comply with their obligations under the False Claims Act.”

“Billing Medicare and Medicaid for prescription drugs without a valid prescription is unlawful and can present serious risks,” said U.S. Attorney Dominick S. Gerace II for the Southern District of Ohio. “As evidenced by this settlement, my Office will enforce the FCA to hold responsible those who improperly bill federal programs.”

“Billing Medicare and Medicaid for drugs dispensed without valid prescriptions puts residents of assisted living facilities at risk and undermines essential safeguards designed to protect patient health and federal health care programs,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS OIG, working closely with our law enforcement partners, will continue to hold accountable those who disregard requirements meant to ensure the safety of patients and the integrity of taxpayer funded programs.”

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