Florida authorities have arrested participants in an alleged $10 million prescription drug fraud ring. Carlos Luis, Adalberto Hernandez, Edward Safille, Eddie Mor and Javier Rodriguez allegedly sold counterfeit Serostim to undercover authorities. The Florida Attorney General reports that Lupron and Serostim were diverted from Medicaid and other sources through multiple corportations owned by the defendents.

Serostim is a prescription growth hormone used to treat wasting disease associated with AIDS. Body builders use the drug illegally. A typical prescription is $7,000 to $8,000 for a one-month supply. After Medicaid or private insurance pays for the drugs, dealers often sell them on the street. There have been cases of this all across the country, including New Jersey and California.

New York and other state Medicaid programs now require prior authorization for prescribing Serostim. New York’s prior authorization form (pdf) is a good example of the kind of information you should collect and review before paying for a Serostim prescription.

However, remember, just requiring prior authorization does not guarantee that fraud will stop. It just makes it more difficult. Be sure to be aware that prior authorization requests can also be bogus. Maintain a healthy level of skepticism to when reviewing prior authorization requests.