Calif. AG Targets Pharmacy Co. Over Free Phones, Other Perks

Law360, New York (September 6, 2012, 3:34 PM EDT) -- Specialty pharmacy firm Allion Healthcare Inc. provided illegal kickbacks by handing out cellphones, bus passes and gym memberships to California Medicaid beneficiaries who transferred their prescriptions to its retailers, the state’s attorney general alleged Friday.

Long Island, N.Y.-based Allion is accused of wooing patients with freebies offered by its Moms Pharmacy stores, which operate at four Golden State locations and cater exclusively to customers with HIV or AIDS. Reimbursement for medications to treat the viral diseases are relatively high, allowing the company to reap fat profits...
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