Pharmacy billing error case to resume

AUGUSTA – The next round of hearings in a Department of Human Services case against an Oakland pharmacy over alleged billing errors is tentatively set to begin July 10.

Rep. Robert Nutting, who runs True’s Pharmacy, is accused by Medicaid of overbilling and poor record-keeping. The department wants to fine the pharmacy $3.6 million for the alleged mistakes.

A DHS officer who presided over a December hearing on part of the case that focused on adult incontinence supplies ruled that the state acted properly by asking True’s for $2.3 million.

The department is seeking $2.3 million to recoup five years of alleged incorrect billing and failing to maintain records. The remaining $1.3 million will be considered at the July hearing on bills for rubber gloves and bed liners.

“We are still hopeful there may be a resolution we can come to,” Nutting said. “We’ll get back to the state some of the money that was determined to be overpaid.”

The hearing officer’s recommendation has been forwarded to DHS Acting Commissioner Peter Walsh. Walsh can accept, deny or alter the ruling, but has not yet made a determination, said spokesman Newell Augur.

It’s likely Walsh will wait until the next round of hearings are over before he makes any decisions, Augur said. DHS is hoping to negotiate a settlement with Nutting.

True’s Pharmacy no longer handles Medicaid accounts because the state stopped sending reimbursement checks, Nutting said. That accounted for 55 percent of his business. Eight employees have since lost their jobs, leaving 14 to run the business.