Jersey City Pharmacy to Pay $3 Million in Health Care Fraud Settlement

Excel Pharmacy Inc., located in Jersey City, has agreed to pay $3 million to settle allegations of submitting fraudulent claims to federal and state health programs, federal prosecutors announced Monday.

The settlement was part of the Department of Justice’s 2025 National Health Care Fraud Takedown, which targeted schemes that exploited Medicare, Medicaid, and other health insurers nationwide. In the District of New Jersey, 15 defendants were charged or reached civil settlements related to fraudulent billing and kickback arrangements.

According to the U.S. Attorney’s Office for the District of New Jersey, Excel Pharmacy caused claims to be submitted to Medicare Part D and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The alleged conduct spanned from January 2, 2015, through January 25, 2022.

The pharmacy’s $3 million settlement does not include an admission of liability.

The Jersey City case was among several in New Jersey involving similar allegations, including charges against health professionals and other pharmacies throughout the state. The coordinated effort is described by federal officials as an unprecedented national crackdown on health care fraud.

“All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law,” the release stated.