Kmart Whistleblower Rewarded More Than $300,000 After Exposing Prescription Overbilling

Posted on behalf of Gordon & Doner on Nov 07, 2013 in Whistleblower Claims


A former Kmart traveling pharmacist is set to receive a $309,000 reward after he came forward alleging that the retailer was fraudulently billing government health care programs. The initial allegations claimed that Kmart had been billing government health care programs like Medicaid and Medicare for all drugs included in a prescription, however, only some of the prescribed drugs were actually dispensed. It was alleged that the retailer would bill the government for the entire prescription but would return the rest of the prescriptions to their stock.

Kmart Corporation has agreed to pay the United States and 32 participating states $2.55 million to settle the allegations. According to the Federal Bureau of Investigations, U.S. Attorney Barbara McQuade said that the retailer violated the False Claims Act which imposes liability on companies who defraud the government.

Along with Michigan the following states will receive funds attributable to their Medicare programs:

Alabama

California

Colorado

Florida

Georgia

Idaho

Illinois

Indiana

Iowa

Louisiana

Maryland

Minnesota

Mississippi

Missouri

Montana

New Jersey

New York

North Carolina

Ohio

Pennsylvania

South Carolina

Tennessee

Texas

Utah

Virginia

Washington

West Virginia

Wisconsin

 

 

 

as well as Puerto Rico and the Virgin Islands. The timing of the settlement spans January 1, 2004 to October 17, 2005 which is prior to when Sears Holding Inc. purchased Kmart.

Cases like this one help ensure that health care program funds are used for the benefit of patients and not instead lost in the bureaucracy of large pharmacies, McQuade said in a public statement.

Under the False Claims Act individuals who bring forth lawsuits against companies are eligible to receive a portion of the monies recovered. In this case Mark Kirsch who originally filed the action in Detroit is now being compensated for his decision to stand up for what was right.

Under Qui Tam law whistleblowers are eligible to receive up to 15% of the compensation recovered along with being pleased that they have helped an ongoing fraudulent act be stopped.

 

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