Navigation Links
Walgreens Pays U.S. $9.9 Million to Settle Medicaid Prescription Drug Allegations

WASHINGTON, Sept. 29 /PRNewswire-USNewswire/ -- Illinois-based national retail pharmacy chain Walgreens has paid the United States and four participating states $9.9 million to resolve allegations of falsely billing the Medicaid program, the Justice Department announced today.

Walgreens submitted claims to Medicaid agencies in four states for prescription drugs dispensed to persons covered both by Medicaid and by private third-party insurance. The retail pharmacy chain allegedly charged the four state Medicaid programs the difference between what the private insurance companies paid for the drugs and what the state Medicaid programs would have paid for the drugs in the absence of private insurance.

The government alleges the claims were false because the drug chain was entitled to reimbursement from the Medicaid programs only for the amount the Medicaid beneficiary would have been obligated to pay Walgreens had the claims been submitted solely to the private insurers, typically the co-payment amount, yet it knowingly submitted claims to the Medicaid programs in excess of the co-pay amount. As a result of this improper billing, Walgreens received reimbursement amounts from the states' Medicaid programs that were higher than it was entitled to receive.

"This settlement confirms that we will vigorously pursue allegations of fraud and abuse in state Medicaid programs, which are funded, in part, by the federal government," said Gregory G. Katsas, Assistant Attorney General for the Department of Justice's Civil Division.

The United States initiated the investigation in response to a lawsuit brought by two pharmacists at Walgreens, Daniel Bieurance and Neil Thompson. Under the False Claims Act, private individuals can bring such actions for fraud on behalf of the United States and collect a share of any proceeds recovered. Under various state False Claims Acts, private individuals can also bring actions for fraud on behalf of those states and receive a share of the proceeds. As a result of today's settlement, the two relators will share $1,446,658.54 as their portion of the recovery.

"Health care fraud continues to be a priority for both the District of Minnesota and the Department of Justice nationwide," said U.S. Attorney Frank J. Magill. "Our office is gratified to see a substantial recovery of funds for the taxpayers, helping to ensure the continued availability of Medicare and Medicaid trust funds in the future."

The case was handled jointly by the Justice Department's Civil Division and the U.S. Attorney's Office for the District of Minnesota, and the offices of the Attorney General for the states of Michigan, Florida, Minnesota and the Commonwealth of Massachusetts, with investigative assistance provided by the Office of the Inspector General, Department of Health and Human Services.

The case is entitled U.S. ex rel. Thompson et al. v. Walgreen Co., (D. Minn) Civ. Action No. 05-SC-759.

SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Longs Drug Stores Confirms Receipt of Expression of Interest from Walgreens
2. Walgreens to Pay $35 Million to U.S., 46 States & Puerto Rico to Settle Medicaid Prescription Drug Fraud Allegations
3. Walgreens Pays $35 Million, Settles Pharmacist-Whistleblower Qui Tam Drug Switching Allegations
4. Video: Walgreens to Provide $35 Million in Free Health Screenings with The Take Care Health Tour
5. Worlds First Non-Contact Thermometer for Children Now Available at Walgreens Nationwide
6. AARP & Walgreens Team Up to Help Seniors Get the Right Rx
7. Kidz-Med to Launch the Thermofocus(R) 5-in-1 Exclusively at Walgreens Stores Nationwide
8. Walgreens Launches New Health Essentials Catalog and Website for AARP Members Featuring More Than 20,000 Health-Related Products
9. Biopharmaceutical Company, Cephalon, To Pay $425 Million & Enter Plea to Resolve Allegations of Off-Label Marketing
10. Herley New England Receives Additional $1.3 Million Contract Award from Lockheed Martin for the Multi-Mission Helicopter
11. Congress Sets New Course for Lung Cancer Research; Approves $20 Million for New Defense Department Program
Post Your Comments:
(Date:6/25/2016)... ... June 25, 2016 , ... On Friday, June 10, Van Mitchell, ... at Work award to iHire in recognition of their exemplary accomplishments in worksite health ... annual Maryland Workplace Health & Wellness Symposium at the BWI Marriott in Linthicum Heights. ...
(Date:6/24/2016)... ... June 24, 2016 , ... June 19, 2016 is ... associated with chronic pain and the benefits of holistic treatments, Serenity Recovery Center ... suffering with Sickle Cell Disease. , Sickle Cell Disease (SCD) is a disorder of ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... micro-osteoperforation for accelerated orthodontic treatment. Dr. Cheng has extensive experience with all areas ... , AcceleDent, and accelerated osteogenic orthodontics. , Micro-osteoperforation is a revolutionary adjunct ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... Clinical Decision Making in Emergency Medicine conference in Ponte Vedra Beach, FL. The ... published in Emergency Medicine Practice and Pediatric Emergency Medicine Practice. , ...
(Date:6/24/2016)... ... ... National recruitment firm Slone Partners is pleased to announce the placement of ... President of North American Capital Sales at HTG Molecular . , ... the commercialization of the HTG EdgeSeq system and associated reagents in North America. , ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... , June 24, 2016 ... has announced the addition of the " Global ... This report ... provides an updated review, including its applications in various ... total market, which includes three main industries: pharmaceutical and ...
(Date:6/24/2016)... , June 24, 2016  American Respiratory Labs (ARL), a ... now able to perform sophisticated lung assessments in patients, homes, thanks ... Inc. Patients are no longer limited to having ... PRO ® , ARL patients like Jeanne R. of ... the comfort of her own home. ...
(Date:6/24/2016)... NAMUR , Belgium , ...  (NYSE MKT: VNRX), today announced the appointment of ... Board of Directors as a Non-Executive Director, effective ... the Company,s Audit, Compensation and Nominations and Governance ... Board, Dr. Futcher will provide independent expertise and ...
Breaking Medicine Technology: