Conn. To Sue Fla. Compounding Pharmacy Over Kickback Scheme

Sep 12, 2018

Connecticut Attorney General George Jepsen says that he is suing a Florida-based pharmacy, and some current and former state employees for defrauding almost $11 million from the state through a kickback scheme.

Jepsen alleges that AssuredRx, the Florida-based compound pharmacy, conspired with a retired Connecticut corrections employee and his former wife in a scheme to overcharge the state’s employee pharmacy benefit for what are often over-the-counter medications mixed together.

“And this is a scam that is going on in other states, as well, and the U.S. military. The profit margin on these compound drugs are so large that it’s enormously in the financial interest of the pharmacy to see if people will engage and seek the prescriptions to get kickbacks.”

Jepsen says Connecticut officials became suspicious a few years ago after the annual billing for compounded drugs suddenly went up from less than $1 million a year to more than $20 million a year.