The Department of Justice announced that Walgreens will settle two health care fraud lawsuits totaling $269 million.
The first lawsuit resolves allegations that Walgreens improperly billed Medicare and Medicaid for hundreds of thousands of insulin pens it knowingly dispensed to patients who did not need them. Walgreens purposely configured its electronic pharmacy management system to prevent pharmacists from dispensing less than a full box of five insulin pens, even if the patient did not need that much insulin. The settlement will require Walgreens to pay approximately $168 million to the United States, in addition to $41.2 million to state governments.
The second lawsuit settles allegations that Walgreens overbilled Medicaid programs by failing to disclose the lower drug prices it offered the public through its discount program. Walgreens offered discounted prices on prescription drugs to the general public through the Walgreens Prescription Savings Club, while charging substantially higher prices for the same drugs paid for by Medicaid. The settlement will require Walgreens to pay $60 million.
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