Walgreens to Pay $269.2 Million in Healthcare Fraud Settlements
Manhattan U.S. Attorney Geoffrey S. Berman announced today that national pharmacy chain WALGREENS BOOTS ALLIANCE, INC. (WALGREENS) must pay the United States and state governments a total of $269.2 million in two civil healthcare fraud settlements.
The settlements, which were unsealed today, require WALGREENS to pay $209.2 million to resolve allegations that it improperly billed Medicare, Medicaid, and other federal healthcare programs for hundreds of thousands of insulin pens it knowingly dispensed to program beneficiaries who did not need them. The second settlement requires WALGREENS to pay $60 million to resolve allegations that it overbilled Medicaid by failing to disclose to and charge Medicaid the lower drug prices that WALGREENS offered the public through a discount program.
In both settlements, WALGREENS admitted and accepted responsibility for conduct the Government alleged in its complaints under the False Claims Act.
“Medicare and Medicaid provide essential healthcare coverage to millions of people across this country,” said Manhattan U.S. Attorney Geoffrey S. Berman. “The financial integrity of these programs depends on truthful and accurate billing by pharmacies like Walgreens. Overbilling and improper billing of Medicare and Medicaid unduly burden taxpayers and put the solvency of these vital healthcare programs at risk. This Office will hold healthcare providers to account when they fail to deal honestly with federal programs.”
The first settlement, approved on January 16, 2019, by U.S. District Judge Paul A. Crotty, requires WALGREENS to pay $209.2 million to resolve allegations that it improperly billed Medicare, Medicaid, and other federal healthcare programs for hundreds of thousands of insulin pens it knowingly dispensed to program beneficiaries who did not need them.
The second settlement, approved on January 15, 2019, by U.S. District Judge J. Paul Oetken, requires WALGREENS to pay $60 million to resolve allegations that it overbilled Medicaid by failing to disclose to and charge Medicaid the lower drug prices that WALGREENS offered the public through a discount program.
The financial integrity of Medicare and Medicaid depends on truthful and accurate billing by pharmacies like Walgreens. Overbilling and improper billing of Medicare and Medicaid unduly burden taxpayers and put the solvency of these vital healthcare programs at risk.
Defendant: WALGREENS BOOTS ALLIANCE, INC.
Criminal Charges: Healthcare Fraud
City and State: New York
Date: January 15, 2019 and January 16, 2019
Sentence: $269.2 million recovery
Dollar Amounts: $209.2 million and $60 million
Key Facts
- State: New York
- Category: Healthcare Fraud
- Source: DOJ Press Release â†â€â€
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