MINNEAPOLIS - Minnesota-based Target Corp. has agreed to pay $3 million to resolve allegations it enrolled Massachusetts' Medicaid patients in an automatic prescription refill program, which is against the laws of that state.
U.S. Attorney Erica MacDonald and Massachusetts Attorney General Maura Healy announced the agreement Tuesday. According to allegations in the complaint, Target pharmacies knowingly and routinely enrolled MassHealth patients in the Target's auto-refill program and billed the program for prescriptions, in violation of the state’s regulation prohibiting the practice. This practice continued until Target sold its pharmacy business to CVS Health in or around December 2015.
Massachusetts is among at least 20 other states that do not allow pharmacies to automatically refill prescriptions paid for by Medicaid without an explicit request from the patient for each refill. The policy provides an important control against wasted or unnecessary prescriptions that are reimbursed by taxpayer funds.
“This resolution demonstrates our ongoing commitment to ensuring compliance with rules that are specifically designed to protect taxpayer funds and prevent wasted medications,” said MacDonald in a released statement.
As part of the civil settlement Target denied the allegations of wrongdoing and False Claims Act
liability. The U.S. Attorney's Office says Target cooperated with the government’s investigation of this matter.
