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Vermont To Receive $1,000,000 From Mcgregor’s Pharmacy To Settle Medicaid And Consumer Fraud Allegations

CONTACT: Edward A. Baker, Assistant Attorney General, (802) 828-5511

December 17, 2012

Attorney General William H. Sorrell announced today that Vermont will receive $1,000,000 as part of a settlement with McGregor’s 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, McGregor’s 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, McGregor’s 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, McGregor’s 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. McGregor’s Pharmacy has also agreed to heightened monitoring of its Medicaid claims by the State for at least the next five years. The pharmacy’s owner, Audrey McGregor-Reardon, has been removed from any operational or ownership role in the pharmacy, and will be placed on the State’s 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 General’s 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 U.S. Department of Health and Human Services, Office of the Inspector General, and the United States Attorney’s Office for the District of Vermont.

  Website consulting provided by The National Association of Attorneys General.