According to University of California, allegedly a group of physicians defrauded students’ self-funded health care benefit plan of $12 million by prescribing thousands of drugs to students who did not know they had been dispensed under their names.
University of California sued Studios Pharmacy, Excel Care Pharmacy, Pharma Pro Solutions and California Clinical Trials, and 17 people in Superior Court, claiming they “drained” the University of California Student Health Insurance Plan of millions of dollars through false claims.
Allegedly, students were also targeted with social media ads that offered them as much as $550 to enroll in "sham clinical trials" by California Clinical Trials, LLC.
Reportedly, many of the students were also prescribed pain creams, normally given to patients who suffer from arthritis, without even being examined by doctors. Altogether, possibly over 500 students handed over their personal information to the company.
California Clinical Trials LLC, allegedly attended college job fairs, telling students about marketing job opportunities at pharmaceutical companies if they revealed their health insurance and medical information and were willing to try medications.
"This needs to be immediately stopped," Dr. John Stobo, the executive vice president for UC Health, said in a statement. "We have identified nine different health care providers who prescribed medications to these students, likely without any indication of physical exams or even a physician-patient relationship."
Reportedly, prescribers wrote over hundreds of prescriptions a day causing the UC Student Health Insurance Plan almost $1 million a day in losses.
The prescription medications allegedly involved in this scheme include Dermacin, Inflammacin, Diclofex, Mebolic, Migranow, Inflammation Reduction Pak, Xelitral, and perhaps others.
University of California is warning students to beware of anyone offering free samples or easy cash in exchange for personal information.
