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Target pays $3 million for improperly billing automatic prescriptions refills

(Scott Olson/Getty Images/File)

Target Corp. will pay $3 million to settle allegations that it improperly billed the state’s Medicaid program through an unauthorized automatic prescription refill program, the Attorney General’s office said Monday.

The company violated Massachusetts and federal law by collecting payments from MassHealth between August 2009 through July 2015, when Target ran the refill program at its Massachusetts locations, officials said.

Current state regulations prohibit pharmacies from automatically refilling prescriptions that were not explicitly requested by a MassHealth patient or caregiver.

“Unauthorized automatic refills can result in inappropriate prescription drug use and wastes taxpayer dollars,” Attorney General Maura Healey said in a statement. “This settlement will bring money back to our state and will help ensure that our healthcare resources reach those who need them the most.”

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The investigation began after a whistleblower brought the action to court in Minnesota, officials said. The Attorney General’s office previously settled similar allegations with PharmaHealth, Neighborhood Diabetes, and AllCare Pharmacy.


Abigail Feldman can be reached at abigail.feldman@globe.com