Listen to this article

Five pharmacies in New Jersey have agreed to pay $1.935 million to resolve allegations they violated the False Claims Act by knowingly billing federal health care programs for drugs that were never dispensed, authorities said.

According to the U.S. Attorney’s Office for the District of New Jersey, inventory records allegedly showed that the businesses did not purchase enough medications from wholesalers to fill the prescriptions billed to the Medicare Part D Program and New Jersey Medicaid Program between 2020 and 2022.

Under the terms of the settlement announced May 28, they will each pay:

• $1 million – JFK Pharmacy, Jersey City 
• $600,000 – Summit Care Pharmacy, Jersey City 
• $133,000 – Greenville Pharmacy, Jersey City 
• $101,000 – Alexandria Pharmacy, Elizabeth 
• $101,000 – Broadway Care Pharmacy, Bayonne 

According to authorities, the settlements stem from a joint investigation by the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s commercial litigation branch.

In a statement, interim U.S. Attorney for New Jersey Alina Habba said, “All pharmacies that bill federal programs must ensure accurate billing and may not bill for medications they never dispensed. The Office will continue to pursue entities that fail in their essential responsibilities and engage in fraud, waste, or abuse.”

Authorities noted that the claims resolved by the settlement are allegations only and there has been no determination of liability.

It also encouraged the public to report any tips or complaints regarding potential health care-related fraud, waste, abuse and mismanagement to the Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477).