Vermont to receive $1 million from McGregor’s Pharmacy to settle fraud allegations

Attorney General William H Sorrell announced today that Vermont will receive $1,000,000 as part of a settlement with McGregors Pharmacy, which has pharmacies in both Winooski and South Hero, Vermont. The settlement resolves a civil lawsuit filed in March 2010 in which the State alleged that, between April 2004 and December 2011, McGregors Pharmacy obtained excessive payments from the Vermont Medicaid program by submitting Medicaid claims for dispensing drugs more frequently than instructed by physicians and permitted under the Medicaid rules, and by charging Medicaid beneficiaries illegal administrative fees and co-payments.
As part of the settlement, which will be shared with the federal government, McGregors Pharmacy has made a payment to the State of $250,000, with the remaining settlement amount, plus interest, to be paid over seven years. In addition, with State oversight, McGregors Pharmacy will reimburse Medicaid beneficiaries for any co-payments and administrative fees, plus interest, that the beneficiaries overpaid between 2004 and 2012. Eligible Medicaid beneficiaries will be contacted by the State. The State expects that, over the next two years, reimbursements to these individuals will total approximately $111,000. McGregors Pharmacy has also agreed to heightened monitoring of its Medicaid claims by the State for at least the next five years. The pharmacys owner, Audrey McGregor-Reardon, has been removed from any operational or ownership role in the pharmacy, and will be placed on the States Medicaid provider exclusion list.
According to Attorney General Sorrell, this settlement achieves a hard-fought victory both for Vermont and for individual consumers, and helps protect the integrity of the Medicaid program. The Attorney Generals Office worked in close collaboration throughout the investigation and litigation of this matter with members of the Program Integrity Unit within the Department of Vermont Health Access. The State was also assisted by agents with the US Department of Health and Human Services, Office of the Inspector General, and the United States Attorneys Office for the District of Vermont.
Vermont AG 12.17.2012