United States $269.2 million settlement with Walgreens over alleged fraud and overbilling
Attorney General Curtis Hill announced that Indiana has joined the United States, the District of Columbia and other states in settling two qui tam (whistleblower) lawsuits against Walgreens Boots Alliance (Walgreens).
The agreements resolve allegations that Walgreens knowingly engaged in fraudulent over-dispensing of insulin pens to Medicare and Medicaid beneficiaries and billed Medicaid for certain prescription drugs at rates higher than its usual and customary rates. Walgreens, headquartered in Deerfield, Ill., and incorporated in Delaware, operates the largest retail pharmacy chain in the United States with 8,309 locations across all 50 states.
Attorney General Hill, through his office’s Medicaid Fraud Control Unit, participated in the investigations and negotiations leading to these settlements.
Under the Insulin Pens Settlement, Walgreens will pay the United States and the states $209.2 million. Of this amount, $89.1 million will go to the state Medicaid programs to resolve civil allegations that Walgreens’ unlawful over-dispensing of insulin pens caused false claims to be submitted to the Medicaid health care programs. As part of the settlement, Indiana Medicaid will receive $2.9 million in restitution and other recovery.
Under the Discount Drug Pricing Settlement, Walgreens will pay the United States and the states $60 million. Of this amount, $27.9 million will go to the state Medicaid programs to resolve civil allegations that Walgreens submitted claims to the state Medicaid programs in which the prices it identified as the usual and customary prices for certain prescription drugs that it sold through its Prescription Savings Club (“PSC”) program were higher than the prices it charged for those drugs under the PSC program. This practice allegedly enabled Walgreens to get more money in reimbursements from the state Medicaid programs than the amounts to which it was legally entitled. As part of the settlement, Indiana Medicaid will receive $953,742.96 in restitution and other recovery.
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