A.G. Schneiderman Announces $846,000 Settlement With New York Specialty Pharmacy to Resolve Allegations of Medicaid Fraud
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Attorney General
"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
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
As part of the settlement agreement, Sorkin's admitted to the following conduct during the period of
* When contacting insurance companies to obtain prior authorization for coverage of specialty drugs prescribed for
* 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
The agreements - one with the State and one with federal authorities - followed a joint investigation by the Attorney General's
The state case was handled by Special Assistant Attorney General
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