Target Corp. has agreed to pay $3 million to resolve allegations that it violated rules of Massachusetts' Medicaid program.
Federal and Massachusetts authorities allege Minneapolis-based Target violated federal and state False Claims Acts by automatically refilling Medicaid recipients' prescriptions and seeking payment from Medicaid.
Massachusetts is among several states that prohibit pharmacies from automatically refilling Medicaid prescriptions without the beneficiary's explicit request. The policy is designed to prevent unnecessary prescriptions from being reimbursed by taxpayers.
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Authorities say Target pharmacies knowingly and routinely enrolled MassHealth beneficiaries in the auto-refill program, then billed MassHealth. The practice continued until Target sold its pharmacy business to CVS Health in 2015.
Target says it cooperated and provided information to authorities, including information about its efforts to comply with Medicaid laws. Target says it's satisfied the issue is resolved.
Authorities say the company denied wrongdoing.