Navigation Links
Walgreens to Pay $35 Million to U.S., 46 States & Puerto Rico to Settle Medicaid Prescription Drug Fraud Allegations
Date:6/4/2008

WASHINGTON, June 4 /PRNewswire-USNewswire/ -- Walgreen Co. of Deerfield, Ill., has agreed to pay $35 million to settle claims that from 2001 to 2005, it improperly switched patients to different versions of the prescriptions drugs Ranitidine, Fluoxetine and Eldepryl in order to increase its reimbursement from Medicaid, the Justice Department announced today.

Walgreens, which operates over 5,000 retail pharmacies throughout the U.S., switched the prescriptions for Medicaid patients who were prescribed 150 mg or 300 mg tablets of Ranitidine to more expensive capsules; prescriptions for 10 mg or 20 mg capsules of Fluoxetine to more expensive tablets; and prescriptions for 5 mg tablets of Eldepryl to more expensive capsules. By switching the form of the drug dispensed to Medicaid patients, Walgreens substantially increased its reimbursement from Medicaid while providing no additional medical benefit to patients.

"This is our third settlement with a company that has engaged in improper drug switching, and it represents the government's continuing commitment to vigorously pursue fraud in government health care programs," said Gregory G. Katsas, Acting Assisting Attorney General for the Civil Division. "The United States will not tolerate pharmacies or any other health care providers that attempt to manipulate the Medicaid program at the taxpayers' expense."

Walgreens will pay $35 million to resolve a False Claims Act qui tam action filed in 2003 by Bernard Listiza, a licensed pharmacist. The federal share of the settlement is approximately $18.6 million. Forty-six states and Puerto Rico will share approximately $16.4 million under separate settlement agreements. Lisitza will receive approximately $5 million as his share of the federal and state settlements.

"Switching medication from tablets to capsules might seem harmless, but when that is done solely to increase profit and in violation of federal and state regulations that are designed to protect patients, pharmacies must know that they are subjecting themselves to the possibility of triple damages, civil penalties and attorney fees," said Patrick Fitzgerald, U.S. Attorney for the Northern District of Illinois. "These penalties, coupled with the willingness of insiders to report fraud, should deter such misconduct, but when it doesn't, the result in this case and others serves notice that we will aggressively pursue all available legal remedies."

Walgreens has also entered into a compliance agreement with the U.S. Department of Health and Human Services to insure that Walgreens does not improperly switch drugs in the future. The compliance agreement will be in effect for five years.

The U.S. Attorney's Office for the Northern District of Illinois (Chicago) supervised the joint federal and state health care fraud investigation with assistance from the Civil Division, the National Association of Medicaid Fraud Control Units (NAMFCU), the Office of Inspector General for the U.S. Department of Health and Human Services, the FBI and the U.S. Food and Drug Administration.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Walgreens Pays $35 Million, Settles Pharmacist-Whistleblower Qui Tam Drug Switching Allegations
2. Video: Walgreens to Provide $35 Million in Free Health Screenings with The Take Care Health Tour
3. Worlds First Non-Contact Thermometer for Children Now Available at Walgreens Nationwide
4. AARP & Walgreens Team Up to Help Seniors Get the Right Rx
5. Kidz-Med to Launch the Thermofocus(R) 5-in-1 Exclusively at Walgreens Stores Nationwide
6. Walgreens Launches New Health Essentials Catalog and Website for AARP Members Featuring More Than 20,000 Health-Related Products
7. Thousands to Greet 2,500 Riders as AIDS/LifeCycle Wheels Into L.A. June 7; 7-day, 545-Mile Ride From San Francisco Raises a Record $11.6 Million for HIV/AIDS Services
8. Worlds Leading Health Experts Urge Countries to Use Newly Released Data to Prevent the Death of Millions of Children Due to Rotavirus
9. HLTH Announces Agreement to Sell ViPS Unit to General Dynamics for $225 Million
10. AGA Medical Corporation Agrees to Pay $2 Million Penalty and Enter Deferred Prosecution Agreement for FCPA Violations
11. Michael J. Fox Foundation for Parkinsons Research Commits up to $2 million to Visualize Alpha-Synuclein Protein in the Brain
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:9/19/2017)... ... ... Driving Dynamics Inc., announced today it has been selected as a 2017 ... its mission to continually monitor the training marketplace for the best providers of training ... and Safety Training Companies list was based on the following criteria: , ...
(Date:9/19/2017)... ... 2017 , ... Spain’s popular line of health and wellness ... to RonnieColemanNutrition.com. , ACPG Laboratories has been in business for more than ... on the healing properties of plants, a proven science known as phytotherapy. ...
(Date:9/19/2017)... ... 2017 , ... For decades doctors, nurses, and other healthcare providers have been ... factors and calculating their cardiovascular disease (CVD) risk in the next 10 years. ... predicted today: an estimated 10-year risk prediction! , Imagine if the weatherman says there ...
(Date:9/19/2017)... , ... September 19, 2017 , ... ... the country with the Davidson Fellows Scholarship on September 27 at a reception ... in Science, Technology, Engineering, Mathematics, Literature and Music. , “I am honored to ...
(Date:9/19/2017)... ... 19, 2017 , ... Emergency nursing expertise, skill set, and ... (CEN®) certification according to a large-scale study announced today by the Board ... the Human Resources Research Organization (HumRRO) in late 2016 and early 2017, included ...
Breaking Medicine News(10 mins):
(Date:9/1/2017)... WHIPPANY, N.J. , Sept. 1, 2017  Bayer will ... at the European Society for Medical Oncology (ESMO) 2017 Congress, ... studies presented will include new preclinical and clinical data on ... from two earlier pipeline projects. ... of the best minds in cancer research at ESMO," said ...
(Date:8/29/2017)... , Aug. 29, 2017 ivWatch, LLC, the leading provider ... infiltrations, announced it has been awarded an Innovative Technology contract from ... the country. ... device to aid in the early detection of peripheral IV infiltration ... The Innovative Technology contract ...
(Date:8/28/2017)... Aug. 28, 2017 Hill-Rom Holdings, Inc. (NYSE: HRC), ... Monday, September 11, 2017, in New York ... officer, is scheduled to present at 11:05 a.m. Eastern Time. ... at http://ir.hill-rom.com/events.cfm . A recorded replay will be available ... December 10, 2017. ...
Breaking Medicine Technology: