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N.J. Fraud Scheme Milked ‘Exorbitant’ Rates for Compounded Drugs

July 29, 2020, 10:22 PM

A New Jersey man pleaded guilty Wednesday to taking part in a $5.3 million scheme to fraudulently bill health insurance plans for expensive personalized medications, the Justice Department said.

“Compounded” medications are mixed by a pharmacist to meet the specific medical needs of an individual patient. The drugs at issue in this specific scheme included scar creams, wound creams, metabolic supplements, and vitamins.

John Cuffari admitted in his plea that he recruited people whose insurance plans covered the medicine and convinced them to obtain prescriptions for the pricey drugs regardless of their medical need, according to a DOJ statement.

Cuffari ...

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