Amazon.com Inc's online pharmacy subsidiary PillPack has agreed to pay $5.79 million to the federal government, 30 states and the District of Columbia to resolve claims that it overcharged government health insurance programs by dispensing more insulin injector pens than patients needed.
, announced by federal prosecutors on Monday, PillPack LLC admitted that it had dispensed and billed for more insulin pens than patients should have received.
"This had no impact on patient safety, and we never charged customers for more than what was dispensed," the company said. Prosecutors said PillPack's overbilling stemmed from the company's practice of dispensing insulin injection pens in unopened packs of five, even if it resulted in patients receiving more days' supply of insulin than they were allowed. PillPack billed for the entire amount, and to avoid having the claims denied, falsely underreported how many days' supply the insulin was for the patient, prosecutors said.
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