Target to pay $3M to resolve Massachusetts Medicaid claim

MINNEAPOLIS (AP) — Target Corp. has agreed to pay $3 million to resolve allegations that it violated rules of Massachusetts’ Medicaid program.

Federal and Massachusetts authorities allege that Minneapolis-based Target violated federal and state False Claims Acts by automatically refilling Medicaid recipients’ prescriptions and seeking payment from Medicaid.

Massachusetts is among several states that prohibit pharmacies from automatically refilling Medicaid prescriptions without the beneficiary’s explicit request. The policy is designed to prevent wasted or unnecessary prescriptions that would be reimbursed with taxpayer funds.

Authorities say Target pharmacies knowingly and routinely enrolled MassHealth beneficiaries in the auto-refill program, then billed MassHealth. The practice continued until Target sold its pharmacy business to CVS Health in late 2015.

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Target didn’t reply to a message seeking comment, though authorities say the company denied wrongdoing. There has been no determination of liability.

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