A.G. Schneiderman Announces $846,000 Settlement With New York Specialty Pharmacy to Resolve Allegations of Medicaid Fraud - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
October 10, 2014 Newswires
Share
Share
Post
Email

A.G. Schneiderman Announces $846,000 Settlement With New York Specialty Pharmacy to Resolve Allegations of Medicaid Fraud

Targeted News Service

NEW YORK, Oct. 9 -- New York Attorney General issued the following news release:

Attorney General Eric T. Schneiderman today announced that the state has entered into a settlement agreement with Sorkin's Ltd Rx. d/b/a CareMed Pharmaceutical Services ("Sorkin's"), a New York-based retail specialty pharmacy, resolving allegations that it made false statements to the New York State Medicaid Program to secure expeditious prior authorizations for the coverage of specialty drugs, and that it submitted false claims to the New York State Medicaid Program for certain prescription medications that were restocked and resold and for refills that recipients never obtained.

"Sorkin's used dishonest and unscrupulous practices that resulted in hundreds of thousands of dollars in wasteful spending," Attorney General Schneiderman said. "This settlement sends the clear message that companies that seek to defraud critical programs like Medicaid will be held accountable."

Sorkin's made the false statements in order to secure expeditious decisions on prior authorizations for the coverage of certain specialty drugs. Furthermore, Sorkin's restocked and resold unused dosages of the drugs, Rituxan and Procrit without reversing the previously submitted claims to Medicaid and Medicare Part D plans for amounts already paid. Sorkin's also submitted false claims for payment to Medicaid or Medicare Part D plans for refills of Rituxan and Procrit that were not actually delivered to and received by recipients. Under the terms of the agreement, Sorkin's will return $846,224 to Medicaid, a program jointly funded by the state and federal governments. New York will receive $465,423 of the total Medicaid restitution funds.

As part of the settlement agreement, Sorkin's admitted to the following conduct during the period of January 1, 2009, through December 31, 2012:

* When contacting insurance companies to obtain prior authorization for coverage of specialty drugs prescribed for Medicaid recipients, some representatives of Sorkin's falsely stated they were calling from the prescribing physician's office. In some instances, Sorkin's representatives responded to questions seeking clinical information based on their understanding of the prior authorization criteria for the particular drug, instead of obtaining patients' actual clinical information from prescribing physicians and conveying that information.

* Sorkin's failed to adequately oversee and train staff responsible for the prior authorization process.

* Sorkin's had inadequate procedures and auditing processes in place to ensure that some claims submitted to certain third-party payors for Rituxan and Procrit, including claims for payment to Medicaid and Medicare Part D, were reversed when necessary or credited to the Medicaid or Medicare Part D plans after Procrit and Rituxan were returned to the pharmacy and restocked, or not delivered to and/or received by the recipient.

The agreements - one with the State and one with federal authorities - followed a joint investigation by the Attorney General's Medicaid Fraud Control Unit and the United States Attorney's Office for the Southern District of New York. The investigation came after a qui tam lawsuit was filed by whistleblower Panna Nahar, a former clinical care coordinator at Sorkin's, alleging violations under the New York False Claims Act and federal False Claims Act. Following the investigation, the offices intervened in the whistleblower case against Sorkin's.

The state case was handled by Special Assistant Attorney General Jill D. Brenner, Associate Special Auditor Investigator Karin Flynn and Supervising Special Auditor Investigator Stacey Millis. The Medicaid Fraud Control Unit is led by Acting Director Amy Held. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

TNS 30FurigayJof 141010-4895154 30FurigayJof

Copyright:  (c) 2014 Targeted News Service
Wordcount:  571

Advisor News

  • Succession planning: Building the future of your practice
  • From loss to security: Supporting widowed clients with life insurance
  • Plan now for lower Social Security benefits later
  • The conversation almost no advisor is having yet
  • Why advisors should offer retirement-longevity planning
More Advisor News

Annuity News

  • Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
  • Industry pushes back on linking ‘financial strength’ to annuity illustrations
  • Sammons Enterprises & Sammons Financial Group Respond to Reports
  • The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
  • Cayman Islands premier to meet with U.S. reinsurance regulators
More Annuity News

Health/Employee Benefits News

  • QANDA: FRAUD DRIVES UP HEALTHCARE COSTS
  • New Mexico to continue funding gender-affirming care for minors as Medicaid ends coverage
  • Arkansas medical groups urge Trump administration to grant 2-year reprieve for Medicaid expansion
  • Report: 45,000 Wisconsinites dropped ACA health insurance after federal subsidies ended
  • Task force keeps Wyoming-run catastrophic health insurance talks alive
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Benchmark International Successfully Facilitated the Transaction Between National Group Marketing Trust and New Era Life Insurance Companies
  • Why the bond market is flexing its muscles, and why everyone needs to care
  • An Application for the Trademark “LIVE TODAY, SECURE TOMORROW.” Has Been Filed by Security Mutual Life Insurance Company of New York: Security Mutual Life Insurance Company of New York
  • Modern Woodmen board selects Shea Doyle as next president and CEO
  • New Influenza Study Results from University of Auckland Described (Risk Management In Deadly Times: the Us Life Insurance Industry In the 1918-9 Influenza Pandemic): Influenza
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet