Former Pharmacy Owner Indicted In Medicare, Medicaid Fraud Scheme
KTVI-TV (St. Louis, MO)
ST. LOUIS - A federal grand jury indicted the owner of a mail-order pharmacy for allegedly defrauding federal Medicare and state Medicaid programs of more than $5.5 million through an ongoing kickback scheme.
Michael McCormac was charged with one count of health care fraud and three counts of violating the Anti-Kickback Statute.
The indictment alleges McCormac paid kickbacks to marketing companies for prescription referrals for topical creams and oral medications, as well as antibiotic and antifungal drugs, which were filled by McCormac's company-GoLiveWell Pharmacy-and reimbursed by federal health insurance.
McCormac is said to have paid the kickbacks as percentages or margins (net profits on each prescription). Prosecutors said McCormac was also aware that patients did not have a valid doctor-patient relationship with the physicians who signed the prescriptions.
Between March 17, 2017 and Nov. 30, 2019, Medicare paid at least $4.7 million to GoLiveWell, Missouri Medicaid paid at least $490,000 to GoLiveWell, and Ohio Medicaid paid at least $330,000 to GoLiveWell.