Iowa Pharmacy Sues State Medicaid After Fraud Investigation Ends Without Charges

The owners of Rashid Pharmacy are suing the Iowa Department of Health and Human Services (DHHS) to recover Medicaid reimbursements withheld during a fraud investigation that concluded without criminal or civil charges. According to the lawsuit, Iowa Medicaid Enterprise has withheld more than $2 million in payments since 2022 for services and products the pharmacy legally provided to Iowa Medicaid beneficiaries.

Rashid Pharmacy operated from 1963 until March 2022, serving Medicaid and Medicare beneficiaries in Iowa, Illinois, and Missouri.

The dispute began in June 2021, when Iowa Medicaid Enterprise suspended all Medicaid payments to the pharmacy based on what it . . .