medicaid fraud

Pharmacy Owner Defrauds Medicaid

medicaid fraudToday, a federal jury in Baltimore, Maryland returned a guilty verdict against Reddy Vijay Annappareddy for defrauding Medicaid and Medicare. Annappareddy owned a chain of pharmacies including Pharmacare and Caremerica. Also indictied were his two employees Vipinkumar Patel and Jigar Patel.

The initial indictment of healthcare fraud by the grand jury was announced by the FBI on 7-29-13.

The scheme that allegedly led to a profit of around $1.5 million involved the pharmacy owners and other identifying open prescriptions with available refills. If the customers never ordered or picked up the refills, the criminals would pretend to fill the subscriptions, bill the Medicaid and Medicare programs for them by filing false claims, and then just return the pills to the shelves.

Annappareddy isn’t the only business owner to steal funds from the U.S. government’s healthcare system. According to Forbes, billions of dollars are stolen from the systems each year. For example, in 2010 the government charged 94 people in one case of filing false Medicare claims worth over $250 million.

If you are aware of Medicaid or Medicaid fraud, you can make a difference by reporting it to the government. You can even report the scam anonymously.

Do you know anyone that has filed a false claim?




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George Tall

Author at Hug Your Nurse
George Tall works in the legal field, is a father of three, and a husband of a RN for 25 years. He enjoys writing about everything, especially nursing! He has been writing for a living, at least partially, since around 2000. As an author on dozens of websites, he enjoys being factual, while spinning a bit of humor where possible.
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