Modern Healthcare – Walgreens will pay $269.2 million to settle two separate allegations that the chain defrauded the federal government and 39 states in elaborate overbilling schemes.
Walgreens has admitted responsibility for the fraudulent billing of the federal government and states alleged by the Justice Department.
Roughly $42 million of this settlement will go to states.
Walgreens also paid $60 million over allegations that it charged Medicaid higher prices than the public, and the chain failed to disclose its discount programs to the government. About $28 million of this sum will go to states.
A Walgreens spokesperson said the company “is pleased to have resolved these matters with the Department of Justice.” Will CVS Keep Promises of Reform, Big Savings?
Shameful: Pharmacy management system rigged to cheat taxpayers
The government reveals a complex and sophisticated system that Walgreens deployed to inappropriately bill Medicare, Medicaid and other programs, such as rigging its electronic pharmacy management system to prevent dispensing of less than a full box of insulin pens, even if a patient didn’t need that volume.
Walgreens also dodged federal regulations on dispensing limits for insulin, according to the complaint.
In the reimbursement claims, the pharmacy falsely stated that the total daily dose supplies did not go over the limit.