Walgreens to Pay $269 Million on Claims It Overcharged Federal Programs
23 January 2019 - 12:21PM
Dow Jones News
By Patrick Thomas
Walgreens Boots Alliance Inc. has agreed to pay more than $269
million to settle federal and state lawsuits that accused it of
overbilling federal health-care programs.
Two separate settlements involving Walgreens, approved last week
by U.S. District Court judges in Manhattan, were unsealed Tuesday,
according to the U.S. Justice Department. U.S. officials said the
company accepted responsibility for conduct the government alleged
in complaints under the False Claims Act.
In the first settlement, Walgreens agreed to pay $209.2 million
to the U.S. and several state governments for improperly billing
Medicare, Medicaid and other federal health-care programs for
hundreds of thousands of insulin pens it dispensed to program
beneficiaries who didn't need them, according to U.S.
officials.
Federal prosecutors said Walgreens configured its electronic
pharmacy management system to prevent its pharmacists from
dispensing less than a full box of five insulin pens, even when
patients didn't need that much.
When a full box of insulin pens exceeded the federal limit for
the daily doses that could be reimbursed, Walgreens stated in its
reimbursement claims to the government that the total days of
supply didn't go over the limit, according to prosecutors.
In the second settlement, Walgreens agreed to pay $60 million to
settle claims that it overbilled Medicaid by failing to disclose
and charge the lower drug prices it offered the public through a
discount program.
Walgreens operates a program, the Prescription Savings Club,
that provides customers discounts on brand-name and generic drugs.
However, federal prosecutors said Walgreens didn't disclose the
discounted drug price when filing for reimbursement from
Medicaid.
"Walgreens is pleased to have resolved these matters with the
Department of Justice," the company said in a statement, adding it
cooperated with the government's investigation and has admitted no
wrongdoing.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
January 22, 2019 20:06 ET (01:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Walgreens Boots Alliance (NASDAQ:WBA)
Historical Stock Chart
From Feb 2024 to Mar 2024
Walgreens Boots Alliance (NASDAQ:WBA)
Historical Stock Chart
From Mar 2023 to Mar 2024