Target will pay $3 million to resolve allegations that the company automatically refilled Medicaid recipients' prescriptions without explicit request in Massachusetts. The allegations violate the False Claims Act.
Here are four things to know:
1. The payment resolves a whistle-blower lawsuit filed in 2015, that claimed the retailer improperly enrolled Medicaid beneficiaries in the Massachusetts auto-refill program and billed the insurer MassHealth for the prescriptions. A former Target pharmacist filed the lawsuit.
2. The improper practice allegedly took place between August 2009 and July 2015, until the retailer sold its pharmacy operations to CVS.
3. Medicaid rules prohibit automatic refills without request from the customer or caregiver.
4. "Target did not follow state and federal regulations put in place to prevent waste in our MassHealth system," said Massachusetts Attorney General Maura Healey. "This settlement will bring money back to our state and will help ensure that our healthcare resources reach those who need them the most."