Justice department settles Medicaid fraud case with Rite Aid

The Delaware Department of Justice recently announced it reached an agreement with Rite Aid of Delaware Inc. to resolve allegations the company, through one of its Delaware pharmacists - Bruce Costa - generated false prescriptions for pharmaceutical products that were submitted for reimbursement to the Delaware Medicaid program but were not provided to Medicaid beneficiaries.

Under the agreement, Rite Aid will pay $435,000 in restitution, to be split between the Delaware Medicaid program and the federal government. In addition, $20,000 will be paid to the Delaware Department of Justice to reimburse the cost of the investigation.

“This case sends a clear message to the healthcare community that we will actively and vigorously investigate allegations of Medicaid fraud and hold offenders accountable,” said Deputy Attorney General Daniel Miller, director of the Delaware Department of Justice Medicaid Fraud Control Unit.

In a previous investigation related to this case, Costa pleaded no contest in New Castle County Superior Court to three counts of fraudulent acts and two counts of falsifying business records. He was sentenced June 11, 2008, to one year of probation on each count and ordered to pay more than $38,000 in restitution to the Delaware Medicaid program and a $6,000 penalty to the state’s general fund. In addition, he was ordered to pay $20,000 for investigative costs to the Delaware Department of Justice.