- Office of the Attorney General
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Sabrina Zafar , Deputy Press Secretary
BOSTON — The Massachusetts Attorney General’s Office (AGO) has reached separate settlements with two independent retail pharmacies, Granby-based Granby Pharmacy, Inc., also known as Center Pharmacy (“Center Pharmacy”), and Boston-based Atlas Pharmahealth, Inc. d/b/a Galaxy Pharmacy (“Galaxy Pharmacy”), resolving allegations that the pharmacies submitted false claims to MassHealth, the state’s Medicaid program.
As part of the settlements, Center Pharmacy and Galaxy Pharmacy will pay over $230,000 and over $270,000 respectively, for a combined total of over $500,000 in restitution to the Commonwealth. In addition, both pharmacies will implement a three-year independent compliance monitoring program at their own expense. The compliance program will result in updated policies and procedures to ensure compliance with MassHealth requirements, along with trainings for staff on the updated policies and procedures, and annual record and on-site audits.
The AGO alleges that between August 2023 and October 2023, when MassHealth was reimbursing up to approximately $1,600 per claim for the prescription vitamin Profola, Center Pharmacy knowingly submitted dozens of false claims for Profola to MassHealth. The AGO’s investigation found that the pharmacy misrepresented to physicians that their elderly nursing home patients had requested Profola prescriptions, when they had not. Within a three-month timeframe, Center Pharmacy submitted 72 Profola claims for 51 individuals, resulting in the pharmacy being reimbursed over $116,000 by MassHealth.
Regarding Galaxy Pharmacy, the AGO alleges that since 2018, despite state law prohibiting MassHealth from paying for prescription refills not explicitly requested by MassHealth members or their caregivers, the pharmacy knowingly submitted unlawful claims to MassHealth for automatically refilled prescription medications that were not explicitly requested.
The AGO asserts that both pharmacies’ alleged conduct violated the Massachusetts False Claims Act and the Medicaid False Claims Statute.
The Center Pharmacy matter was handled by Assistant Attorney General Mary-Ellen Kennedy, Investigations Supervisor Christopher Cecchini, and Investigator Emily Hunt, each of the AGO’s Medicaid Fraud Division, with assistance from MassHealth.
The Galaxy Pharmacy matter was handled by Assistant Attorneys General Natalie Rutkowski and Patrick C. McCooe, Investigations Supervisor Christopher Cecchini, and Investigations Supervisor Shelby Stephens, also each of the AGO’s Medicaid Fraud Division, with assistance from MassHealth.
These matters are representative of the AGO’s ongoing efforts to hold accountable those who misuse roles of authority or public trust, including through abuse of the MassHealth program. In November 2021, the AGO’s Medicaid Fraud Division reached an $800,000 settlement with Bravo Pharmacy for inappropriately automatically refilling patient medications, including inappropriately dispensing an expensive multivitamin known as Hylavite. Additionally, in September 2020, the AGO’s Medicaid Fraud Division reached a $500,000 settlement with Remedium Pharmacy for inappropriately automatically refilling patient medications, including expensive compounded pain creams.
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 Medicaid/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 $5,922,320 for federal fiscal year 2025. The remaining 25 percent, totaling $1,974,102 for FY 2025, is funded by the Commonwealth of Massachusetts.
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