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Commentary

Amazon’s PillPack Online Pharmacy Settles Department of Justice Lawsuit for $6 Million

Ann W Latner, JD

PillPack, an online pharmacy owned by Amazon, has agreed to pay almost $6 million after admitting to improperly billing government health care programs, including Medicare and Medicaid, for more insulin pens than patients needed according to their prescriptions.

“Pharmacies are trusted to provide accurate information to government health care programs and to prevent waste when dispensing medications to patients,” said US attorney Damian Williams in a statement.

“PillPack abused this trust by dispensing insulin refills long before patients needed them and by falsely reporting the days-of-supply of insulin actually dispensed to prevent its claims for reimbursement from being denied. This Office will continue to hold pharmacies accountable when they submit false information and waste taxpayer dollars,” Williams said.

The $5.79 million settlement will go to reimburse federal and state governments for overpayments for insulin pen prescription claims.

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