Target to Pay $3M Over Medicaid Rx Refill Rules (1)

Target Corp. agreed to pay $3 million to settle state and federal False Claims Act claims alleging it violated prohibitions on automatic prescription refills.

A June 9, 2015 complaint alleged Target’s pharmacies between 2011 and 2015 violated federal and Massachusetts state False Claims Acts by making Medicaid pay for automatically refilled prescriptions. A Minnesota state handbook prohibits pharmacies from automatically refilling prescriptions for Medicaid patients and beneficiaries and specifically defines automatically refilled prescriptions as a “non-covered” service.

U.S. Attorney for the District of Minnesota Erica MacDonald and Massachusetts Attorney General Maura Healey announced the settlement Dec. 11.

The complaint was ...