According to a press release from the Department of Justice (DOJ), a Michigan pharmacist was sentenced to 80 months in prison for committing health care fraud. The pharmacist’s scheme consisted of billing health care benefit programs for prescription medications that were ultimately never dispensed. From 2019 through 2022, the pharmacist and his co-conspirator used forged prescriptions from providers to conceal their fraudulent scheme; however, there was no record of these patients ever seeing the prescribers indicated on the forged prescriptions.
Together, these two perpetrators caused over $6 million in losses to health care benefit programs like Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. The pharmacist pleaded guilty to one count of conspiracy to commit health care fraud. In addition to being sentenced 80 months in prison, the pharmacist was ordered to pay $3,889,760 in restitution and $3,230,147 in forfeiture, including his interest in approximately $1.2 million of fraudulent proceeds seized by law enforcement.
PAAS Tips:
- Only bill a claim pursuant to a valid prescription on file. Billing a “test” claim or “ghost” claim is prohibited by PBMs and those claims, even if reversed, are still subject to audit.
- Failure to provide a valid hardcopy can raise red flags and lead to accusations of billing false claims
- For more examples of fraud, waste and abuse, please see our October 2025 Newsline article, Real-World Examples of Fraud, Waste & Abuse and Audit Implications
Prior Authorization Support: Strategies to Mitigate Audit Risks
Prior authorization (PA) requirements imposed by PBMs have become a major administrative barrier to medication access. To help reduce delays and improve patient outcomes, some pharmacies are assisting prescribers by submitting prior authorizations on their behalf. While these services can benefit patients and strengthen relationships between pharmacies and prescribers, they also introduce important compliance and insurance audit risks that pharmacies must consider.
When pharmacies participate in the PA process, they become directly involved in the documentation used to obtain insurance coverage approval and PBMs may question the integrity of materials due to potential conflicts of interests and rare instances of fraud.
It is important that dispensing 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:
DMEPOS Series #3: Nebulizer Solution Claims
Billing Medicare B is not easy. The Local Coverage Determinations (LCD) and associated Policy Articles (PA) for each DMEPOS category, along with the Standard Documentation Requirements for All Claims Submitted to DME MACs, are filled with billing and documentation guidelines which suppliers must fully comprehend and follow to avoid claim chargeback. The PAAS National® 2026 DMEPOS Newsline Series is a great starting point for pharmacies looking to enhance their comprehension of these unique requirements.
Pharmacies need to be prepared to show the following if audited on Nebulizer claims:
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:
Are You Meeting CMS Standards for LTC Pharmacy at Home?
Retail pharmacies exploring the option to provide long-term care pharmacy services at home must be aware of additional requirements that apply. In 2005, CMS provided guidance to Part D plans on requirements for performance and service criteria regarding pharmacies servicing LTC facilities. More recently, this guidance has been applicable to pharmacies servicing LTC Pharmacy at Home patients. The expectation from payors (particularly those that recognize/reimburse for it) is that these criteria are also applicable to pharmacies servicing qualified patients residing in their home, helping to ensure they receive the same level of care, medication management and safety oversight as those in long-term care facilities.
Expanding your pharmacy services is a great option to provide additional care for your current patients and potentially attract new ones. GPO and LTC contracts can result in enhanced dispensing fees and potential margin expansion compared to retail agreements. The enhanced dispensing fees, in part, are in recognition of the additional costs associated not only with providing special packaging and home delivery, but also ensuring the pharmacy is meeting these CMS defined performance and service criteria.
During audits, PAAS National® has seen OptumRx and Humana require pharmacies to…
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:
New DUR Codes Clarify Medicare Part B or D for Tetanus, Hepatitis A/B and Rabies Vaccines
Tetanus, Hepatitis A/B and Rabies vaccines may be covered by either Medicare Part B or Part D. Coverage typically depends on the vaccine’s purpose:
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:
How to Avoid the Vaginal Cream Recoupment Domino Effect
Estrace® and Premarin® vaginal creams continue to be audit targets because they are often found to be billed incorrectly. A recovery on one claim billed with a wrong days’ supply often causes subsequent refills to be recouped for being ‘refilled too soon’. To prevent this claim recoupment…
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:
Pharmacist Sentenced to 80 Months in Prison
According to a press release from the Department of Justice (DOJ), a Michigan pharmacist was sentenced to 80 months in prison for committing health care fraud. The pharmacist’s scheme consisted of billing health care benefit programs for prescription medications that were ultimately never dispensed. From 2019 through 2022, the pharmacist and his co-conspirator used forged prescriptions from providers to conceal their fraudulent scheme; however, there was no record of these patients ever seeing the prescribers indicated on the forged prescriptions.
Together, these two perpetrators caused over $6 million in losses to health care benefit programs like Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. The pharmacist pleaded guilty to one count of conspiracy to commit health care fraud. In addition to being sentenced 80 months in prison, the pharmacist was ordered to pay $3,889,760 in restitution and $3,230,147 in forfeiture, including his interest in approximately $1.2 million of fraudulent proceeds seized by law enforcement.
PAAS Tips:
Preventing Substitution Errors Among Interchangeable Denosumab Biosimilars
Many pharmacies are familiar with Prolia® (denosumab) for the treatment of osteoporosis in women after menopause who are high risk for fracture or cannot use another osteoporosis medication (or the other medications weren’t efficacious). There is another denosumab product (brand name Xgeva®) approved for bone problems due to cancer. Prolia® and Xgeva® are not …
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:
Improving Accuracy and Efficiency: Rx Days’ Supply Calculator Adoption Grows
Nearly one thousand pharmacy professionals now rely on the Rx Days’ Supply Calculator to help address the ongoing challenges of manually calculating the appropriate quantity or days’ supply of medications, saving time and reducing errors while simultaneously decreasing the risk of PBM audits. The Rx Days’ Supply Calculator app is a tool designed to simplify calculations for pharmacists and pharmacy technicians.
The PAAS Rx Days’ Supply Calculator offers a user-friendly interface designed to enhance efficiency and empower pharmacy staff with confidence:
We invite you to be proactive and experience the benefits of the PAAS Rx Days’ Supply Calculator today! The app is available with a FREE 7-day trial, followed by an annual subscription of $5.99, and can be accessed by visiting the Apple App Store or Android Google Play Store, or check out the website at PAASNational.com/app.
Isotretinoin Therapeutic Equivalence and iPLEDGE® REMS Documentation Alert
According to the FDA labeling, isotretinoin capsules are indicated for the treatment of severe recalcitrant nodular acne in non-pregnant patients 12 years of age and older with multiple inflammatory nodules with a diameter of 5 mm or greater.
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:
Creon Claims at Risk: OptumRx Audit Recoupments Continue
OptumRx continues to focus on medications with special dispensing requirements. Creon® has ranked among the top five medications requested through OptumRx prescription validation requests for the past three years and that trend is continuing into 2026. Although the PBM characterizes these reviews as prescription validation requests rather than desk audits, PAAS National® analysts consistently see pharmacies with claim recoupments resulting from both when Creon …
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: