Rite Aid Faces Whistleblower Lawsuit on Medicaid Drug Fraud

Rite Aid will face allegations it submitted false drug claims to the state of California for Medicaid reimbursement over a seven-year period.

Judge Kimberly Mueller of the U.S. District Court for the Eastern District of California Sept. 5 denied Rite Aid’s motions to dismiss allegations it violated both the federal and California’s false claims acts from 2007 through 2014.

California intervened in the case, alleging Rite Aid knowingly made false certifications to California’s Medicaid program (Medi-Cal) by not performing the required Code 1 drug diagnosis review, certifying patients needed a Code 1 drug when they didn’t, and failing to adequately ...