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September 9, 2013

Worcester Pharmacy To Pay $1.6M To Settle Claims

Worcester’s AllCare Pharmacy has agreed to pay $1.6 million to settle allegations that it improperly billed and received payments from the state’s Medicaid program, Attorney General Martha Coakley’s office announced.

According to Coakley’s office, an investigation found that AllCare violated MassHealth regulations by operating an automatic prescription refill program between October 2008 and July 2012 that refilled prescriptions not specifically requested by the patient or caregiver at the time of each filling. Coakley said the automatic refill program “resulted in MassHealth patients obtaining medications far in excess of what was utilized or needed, resulting in wasted government resources.”

Under the terms of the settlement, AllCare will pay $1.6 million in restitution to the state and have additional reporting requirements to ensure future compliance.

In a statement, AllCare’s attorney, Kevin Conroy, said, “AllCare made a mistake in its operations, cooperated with the AG’s office and is pleased this issue has been resolved.”

Coakley’s office said MassHealth referred AllCare to the AG in March 2011. It’s the first case in which the commonwealth addressed a pharmacy’s operation of an improper auto refill program with MassHealth members.

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