We are living in unprecedented times as the Justice Department announced the outcome of their 2025 National Health Care Fraud Takedown, marking one of the largest enforcement actions of its kind. Criminal charges were filed against 324 individuals, from various health care professions, for their alleged participation in a range of fraud schemes. The total intended losses amount to approximately $14.6 billion – more than double the previous record of $6 billion.
This nationwide effort involved collaboration between federal and state law enforcement agencies across the country including 50 federal districts and 12 State Attorneys General’s Offices. As part of the operation, the government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets.
Leading up to the takedown, the CMS suspended or revoked billing privileges for 205 providers, which successfully helped prevent over $4 billion in false and fraudulent claims.
One area of focus in the investigation was the illegal distribution of prescription opioids. Authorities charged 74 individuals in 58 cases involving alleged diversion of more than 15 million pills, including opioids and other controlled substances. In one case, five individuals associated with a Texas pharmacy were charged with unlawfully distributing over 3 million opioid pills, which were allegedly sold through street-level trafficking operations.
Additionally, the DEA reported filing 93 administrative cases over the past six months aimed at revoking the prescribing or dispensing authority of controlled substances of certain pharmacies, medical practitioners, and companies. DEA Acting Administrator Robert Murphy stated:
“We’re targeting the entire ecosystem of fraud — from pill mills in Texas to kickback clinics exploiting Native communities. If you abuse your medical license to push poison or pad your pockets, we will hold you accountable.”
Telemedicine and genetic testing fraud schemes accounted for over $1.17 billion in alleged fraudulent claims billed to Medicare. According to the report, these schemes often intersect with other areas of concern, including durable medical equipment and COVID-19 testing – both of which remain priorities for ongoing enforcement efforts. In addition, approximately $1.84 billion was associated with alleged false and fraudulent claims billed to federally funded plans and private insurance for reasons deemed medically unnecessary, tied to kickbacks and bribes, or not provided at all.
PAAS Tips:
FreeStyle Libre 2 and 3 Sensors to be Discontinued
Abbott has announced that the FreeStyle Libre 2 and FreeStyle Libre 3 sensors will no longer be available after September 30, 2025. Patients that are currently filling prescriptions for these products will need to obtain new prescriptions for the FreeStyle Libre 2 Plus or FreeStyle Libre 3 Plus sensors. FreeStyle Libre 2 Plus sensors can be used with the FreeStyle Libre 2 Reader and, likewise, the Freestyle Libre 3 Plus sensors can be used with the FreeStyle Libre 3 Reader.
Abbott lists the innovative features of the new sensors, which include the following:
PAAS Tips:
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips:
CERT Improper Payment Rates: DMEPOS
Each fiscal year, the Department of Health and Human Services (HHS) publishes improper payment rates for Medicare FFS Part A, Part B, and DMEPOS claims submitted between July 1 and June 30. These error rates are determined through Comprehensive Error Rate Testing (CERT) audits of a stratified, randomized sample of claims across various provider types and represent both overpayments and underpayments. In 2024, the sample size was 50,000 claims and findings are projected to the total universe of Medicare FFS claims.
Overall, the 2024 report found a 7.66% improper payment rate (increased from 7.38% in 2023 report) which accounted for over $31 Billion. DMEPOS claims had a higher improper payment rate of 21.4% and accounted for over $1.9 Billion.
Below are three tables from the 2024 CERT Report related to DMEPOS items commonly dispensed by community pharmacies.
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips:
Stay in the Know: Caremark Aberrant Practices and Trends
PAAS National® analysts continue to see pharmacies fall victim to Caremark’s Aberrant Practices and Trends enforcement.
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips:
Tips on Days’ Supply Calculations for Foam Products
PAAS National® receives many questions about topical prescriptions, including more complicated products like foam dosage form medications. These products often come in pressurized aluminum cans without a clear way of measuring the product when dispensing. In addition to this issue, prescribers often send prescriptions to the pharmacy with a vague set of instructions. PBMs are looking for a calculable set of instructions, regardless of how difficult it is to measure the product being dispensed. As frustrating as this is, PBMs require a true estimate of the days’ supply to ensure appropriate copays and refill intervals. Prescriptions written for, “Apply to the affected area,” do not provide enough information. Pharmacy staff should be diligent in recognizing when a prescription was sent without a clear way to calculate a days’ supply. This should be a red flag that the prescription requires additional clarification.
PAAS recommends…
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips:
Do You Have Adequate Proof of Patient Copay Collection?
PBMs require pharmacies to not only collect patient copays, but also have documentation to prove it. It is common for PBMs to request proof of copay collection when performing audits. Copays are used by the insurers to help patients understand medication costs and to encourage less costly alternatives. Pharmacies that alter or waive copays set by the PBM are at risk of those claims being recouped, as well as the potential for contract termination.
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips:
Would Your EPIPEN® Claims Pass an Audit?
PAAS National® continues to see a large number of EPIPEN® prescriptions flagged for audit, as well as targeted on OptumRx prescription validation requests. The PBMs often target EPIPEN® products due to their higher cost and confusion around proper billing practices and product substitution. Adhering to the guidance below can help avoid billing issues and reduce the risk of claim recoupment during an audit.
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips:
Flu Shot Season Is Upon Us – Are You Prepared for an Audit?
As the flu shot season starts, PAAS National® wants to make sure you are ready to properly document these routine vaccines in case of an audit. Now is the time to check that you have all required documentation in place for this year’s flu shot season.
What is needed upon an audit:
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips:
Days’ Supply Mistakes: A Fast Track to Recoupment
Calculating the days’ supply on a claim is something every pharmacy does throughout the workday. With a multitude of claims, clerical errors are bound to happen. What are the audit consequences when a days’ supply is billed incorrectly?
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips:
Largest Health Care Fraud Takedown in History
We are living in unprecedented times as the Justice Department announced the outcome of their 2025 National Health Care Fraud Takedown, marking one of the largest enforcement actions of its kind. Criminal charges were filed against 324 individuals, from various health care professions, for their alleged participation in a range of fraud schemes. The total intended losses amount to approximately $14.6 billion – more than double the previous record of $6 billion.
This nationwide effort involved collaboration between federal and state law enforcement agencies across the country including 50 federal districts and 12 State Attorneys General’s Offices. As part of the operation, the government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets.
Leading up to the takedown, the CMS suspended or revoked billing privileges for 205 providers, which successfully helped prevent over $4 billion in false and fraudulent claims.
One area of focus in the investigation was the illegal distribution of prescription opioids. Authorities charged 74 individuals in 58 cases involving alleged diversion of more than 15 million pills, including opioids and other controlled substances. In one case, five individuals associated with a Texas pharmacy were charged with unlawfully distributing over 3 million opioid pills, which were allegedly sold through street-level trafficking operations.
Additionally, the DEA reported filing 93 administrative cases over the past six months aimed at revoking the prescribing or dispensing authority of controlled substances of certain pharmacies, medical practitioners, and companies. DEA Acting Administrator Robert Murphy stated:
“We’re targeting the entire ecosystem of fraud — from pill mills in Texas to kickback clinics exploiting Native communities. If you abuse your medical license to push poison or pad your pockets, we will hold you accountable.”
Telemedicine and genetic testing fraud schemes accounted for over $1.17 billion in alleged fraudulent claims billed to Medicare. According to the report, these schemes often intersect with other areas of concern, including durable medical equipment and COVID-19 testing – both of which remain priorities for ongoing enforcement efforts. In addition, approximately $1.84 billion was associated with alleged false and fraudulent claims billed to federally funded plans and private insurance for reasons deemed medically unnecessary, tied to kickbacks and bribes, or not provided at all.
PAAS Tips:
Are You Billing Divigel® Correctly?
Billing packaged products according to their proper size and unit of measure is crucial for pharmacies, as this common pitfall could result in hefty recoupments from PBMs.
When it comes to billing insurance, a medication like Divigel® (estradiol) transdermal gel packets can be confusing for pharmacies, as different strengths use different billing units. Some are measured in “each”, while others use “grams”. So, why the discrepancy?
Did you know there is much more to your audit assistance membership than just help with audits? The PAAS Member Portal contains a wealth of information and resources to assist you with audits and member service questions. Below is a list of 6 pages found on the Audit Assistance section of the PAAS Member Portal to assist you and your pharmacy staff to be proactive when it comes to audits.
PAAS Tips: