Pharmacy seeks millions from Iowa Medicaid, citing unsupported fraud allegations

By: Clark Kauffman

Outlets: Iowa Capital Dispatch

Published: June 23, 2026

Words: 530

Last Updated: 1 month ago

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The owners of a Fort Madison pharmacy are suing the state over an alleged failure to pay for millions of dollars’ worth of pharmaceuticals.

Rashid Pharmacy is seeking judicial review of a May 22, 2026 order by the Iowa Department of Health and Human Services, which oversees Iowa Medicaid Enterprises.

The company claims it operated in Fort Madison from 1963 to March 2022, when it closed. In June 2021, Iowa Medicaid Enterprise suspended all Medicaid …

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