Federal officials say the quick and quiet nature of phantom pharmacy schemes, which are on the rise, present a challenge to federal fraud-fighters, according to a CNN Money report.
A phantom pharmacy is the term for criminals using a legitimate address to establish a fake pharmacy business. Using stolen physician IDs and patient insurance ID numbers, the operators write phony prescriptions for expensive drugs and submit these for reimbursement to insurers, Medicare or Medicaid. A fake pharmacy can make anywhere from $2,000-8,000 on a single claim.
These scams are difficult to regulate since they may operate for 60 days or eight months, then close and reappear at a new address. Medicare also requires pharmacies to be reimbursed quickly, sometimes in as little as two weeks, which presents an additional challenge to fraud-fighters.
Phantom pharmacies have a wide breadth geographically, more so than most other healthcare scams, according to the report. They often target Florida and California but are popping up in cities like Detroit, New York and Dallas.
Read the CNN Money report on phantom pharmacies.
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A phantom pharmacy is the term for criminals using a legitimate address to establish a fake pharmacy business. Using stolen physician IDs and patient insurance ID numbers, the operators write phony prescriptions for expensive drugs and submit these for reimbursement to insurers, Medicare or Medicaid. A fake pharmacy can make anywhere from $2,000-8,000 on a single claim.
These scams are difficult to regulate since they may operate for 60 days or eight months, then close and reappear at a new address. Medicare also requires pharmacies to be reimbursed quickly, sometimes in as little as two weeks, which presents an additional challenge to fraud-fighters.
Phantom pharmacies have a wide breadth geographically, more so than most other healthcare scams, according to the report. They often target Florida and California but are popping up in cities like Detroit, New York and Dallas.
Read the CNN Money report on phantom pharmacies.
Related Articles on Pharmaceutical Fraud:
Boston Pharmacist Sentenced to 4 Years in Jail for Medicaid Fraud
UCB Pleads Guilty to Off-Label Marketing of Epilepsy Drug; Will Pay $34M
Michigan Accuses McKesson of Inflating Drug Prices, Overbilling Medicaid