Attorney General Richard Blumenthal and Department of Social Services Commissioner Michael P. Starkowski today announced a $1.115 million settlement with the bankruptcy estate of RG Pharmacy, Inc. and its former owner, Roy D. Katz, for illegally billing the state’s Medicaid program.
A DSS audit revealed that Manchester-based RG Pharmacy had illegally converted prescriptions of 30-day supplies or greater into smaller, multiple prescriptions for seven-day supplies.
Over the course of several years, RG Pharmacy used this practice to charge DSS several dispensing fees for each of these smaller prescriptions — rather than one fee for the single prescription.
The settlement reimburses the Connecticut Medicaid Program for losses incurred by RG Pharmacy’s practices, and will be divided between the state and federal governments, which jointly fund the program.
The settlement also prohibits RG Pharmacy and Katz — which have since sold the Manchester store — from participating in any government health care program for at least seven years going forward.
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