Thursday, November 23, 2006

Parker pleads guilty to Medicaid fraud

Oskaloosa pharmacist Jay Parker pleaded guilty Nov. 17 to Medicaid fraud in county district court as part of a plea agreement with the Kansas Attorney General’s office.

According to an AG’s office press release, Parker, 62, was charged with Medicaid fraud before turning himself in to authorities. He waived a preliminary hearing and jury trial and pleaded guilty as charged. He owns and operates Parker’s Pharmacy on the south side of the square.

Medicaid fraud is a severity level 7 non-person felony punishable by 11 to 34 months in prison and a fine of up to $100,000. As part of the plea agreement, Parker paid restitution of $75,000 to the Kansas Medicaid program Nov. 17.

Sentencing in the case has been set for 9 a.m. Dec. 29 in district court. Rex Beasley, deputy attorney general in the AG’s Medicaid fraud and abuse division, litigated the case on behalf of AG Phill Kline.

According to the press release, the Kansas State Board of Pharmacy is in the process of revoking the licenses of Parker and the pharmacy. Parker hasn’t been dispensing prescription medication at the pharmacy for several weeks.

The AG’s office states that, from 2004 to 2006, Parker wrote false prescriptions for Medicaid beneficiaries without doctors’ authorizations. He then used those false prescriptions to bill the state’s Medicaid program $75,000 using the Medicaid beneficiaries’ Medicaid identification numbers.

Parker never actually filled the prescriptions or supplied the drugs to the beneficiaries. The office states Parker also allegedly submitted false claims to private insurance companies.

The guilty plea in the case covers only the claims Parker submitted to the state Medicaid program and doesn’t cover actions or claims that may be asserted against Parker or the pharmacy by the board of pharmacy, the Drug Enforcement Agency, the state insurance department or any county or district attorney for insurance fraud, making a false writing, forgery or any other crime.