Press Release  AG's Office Secures More Than $460,000 from New Bedford Retail Pharmacy for Submitting False Claims to MassHealth

BOSTON — The Massachusetts Attorney General’s Office (AGO) announced today that it has reached settlement with PharmaHealth Pharmacy Inc. (“PharmaHealth”), a New Bedford-based retail pharmacy for falsely billing MassHealth for an expensive multivitamin, even when it was not medically necessary. Under the terms of the agreement, PharmaHealth will pay $464,205 to the Commonwealth, three times the amount falsely billed to MassHealth, and is also required to implement a three-year independent compliance and monitoring program at its own expense.  

This settlement agreement resolves allegations that, at its owner’s direction, PharmaHealth fraudulently billed MassHealth, the state Medicaid program, for the prescription multivitamin DermacinRx Multitam (“DermacinRx”), even though it was not medically necessary and when much cheaper multivitamin alternatives were available from MassHealth.   

According to state regulations, MassHealth will only reimburse providers for prescription drugs and services if the prescription is deemed medically necessary and meets all applicable federal and state requirements.  

The AGO alleges that between March and September 2024, PharmaHealth deliberately sought out the most expensive multivitamin eligible for reimbursement by MassHealth and solicited authorization for DermacinRx prescriptions from members’ physicians to obtain additional money from MassHealth. The AGO’s investigation was initiated by a referral from MassHealth.  

This case was handled by Assistant Attorney General Mary-Ellen Kennedy, Investigator Emily Hunt, and Investigations Supervisor Chris Cecchini, all of the AGO’s Medicaid Fraud Division. MassHealth provided substantial assistance with the investigation. 

The AGO’s Medicaid Fraud Division is a Medicaid Fraud Control Unit, annually certified by the U.S. Department of Health and Human Services to investigate and prosecute health care providers who defraud the state’s Medicaid program, MassHealth. The Medicaid Fraud Division also has jurisdiction to investigate and prosecute complaints of abuse, neglect and financial exploitation of residents in long-term care facilities and of Medicaid patients in any health care setting. Individuals may file a MassHealth fraud complaint or report cases of abuse or neglect of Medicaid patients or long-term care residents by visiting the AGO’s website.    

 The Massachusetts Medicaid Fraud Division receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,458,176 for federal fiscal year 2026. The remaining 25 percent, totaling $2,152,724 for FY 2026, is funded by the Commonwealth of Massachusetts.   

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