POLK COUNTY, Iowa– The Iowa Department of Health and Human Services is taking a pharmacy chain to court, alleging that the company has kept millions of dollars owed to the state.
In a nine-page lawsuit filed on Friday in Polk County, Iowa HHS has accused Nucara Specialty Pharmacy in Pleasant Hill of breach of contract and conversion, claiming the company kept money that did not rightfully belong to it.
The court filing said Iowa bought HIV medIcations at a reduced price through the federal 340B Drug Pricing Program. When insurance companies paid the standard price, the pharmacy collected the difference. Under an agreement with the state, Nucara was allowed to keep a $75 processing fee per claim, but was required to send the remaining profit back to the state each month. However, the lawsuit alleges that those payments stopped.
The state claims the pharmacy is now eight months behind and owes more than $22-million-dollars in past due program income. It also claims the company used the money to pay other creditors, and no longer has the funds to repay the state.
NuCara Petition at Law and Jury DemandDownload
In addition, the lawsuit alleges Nucara is attempting to sell the company to OneroRX, which may not take on NuCara’s debts…