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Kroger Specialty Pharmacy Holdings Agreed to Pay $4.4 Million for Allegedly Violating the Civil Monetary Penalties Law by Submitting Claims for Services by an Unlicensed Pharmacy and by Retaining Overpayments

After it self-disclosed conduct to OIG, Kroger Specialty Pharmacy Holdings, Inc. (Kroger), agreed to pay $4,461,995.24 for allegedly violating the Civil Monetary Penalties Law. On September 2, 2016, Kroger acquired Modern HC Holdings, Inc. (Modern). OIG alleged that: (1) from July 8, 2010, through April 4, 2014, Modern pharmacies improperly submitted claims for prescription drugs and supplies without the requisite state-issued, non-residential pharmacy license; and (2) from December 29, 2014, through August 23, 2017, Kroger retained overpayments when pharmacies failed to reverse test claims for prescription drugs that were not dispensed.

Action Details

  • Date:September 30, 2019
  • Enforcement Types:
    • Fraud Self-Disclosures