Walgreens to Pay NYS $14 Million in Healthcare Fraud Settlements
Walgreens agreed to pay New York over $14 million to settle lawsuits claiming they overbilled New York and federal health care programs for a decade.
On Tuesday, New York Attorney General Letitia James announced New York State has joined with other states and the federal government to reach an agreement in principle with Walgreen Co. to settle allegations that Walgreens violated the False Claims Act by billing Medicaid at rates higher than its usual and customary rates for certain prescription drugs.
As a result, Walgreens will pay states and federal government $60 million, all of which is attributable to the states’ Medicaid programs. New York Medicaid will receive over $8 million in restitution and other recoveries.
“My office will continue to investigate and stop unlawful practices that hurt New York State’s Medicaid Program,” Attorney General Letitia James said in a press release. “We will never let companies get away with illegally billing Medicaid with inflated amounts for prescription drugs."
Also on Tuesday, James announced Walgreens will pay New York over $6.5 million as part of a $209.2 million settlement with the federal government and other states, resolving allegations that Walgreens knowingly engaged in fraudulent conduct when it dispensed insulin pens in full boxes of five pens regardless of the quantity of insulin and/or days’ supply written on the Medicare or Medicaid beneficiaries’ prescription.
Walgreens said in a statement it was not admitting to any wrongdoing but it accepts responsibility.
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