New York joins $60 million federal settlement with Walgreens over false Medicaid billing

By Marian Johns | Feb 6, 2019

ALBANY — The state of the New York has joined a $60 million national federal and state civil settlement with Walgreen Co. (Walgreens) that resolves allegations the drug store chain falsely billed Medicaid relating to the company's Prescription Savings Club (PSC) program. 

According to the New York Attorney General's Office, Walgreens billed states' Medicaid programs for prescription drugs at a higher rate than it charged customers through its PSC program. The company's actions led to Walgreens receiving more in Medicaid reimbursements than it was entitled and to False Claim Act violations, the Attorney General's Office said. 

“My office will continue to investigate and stop unlawful practices that hurt New York state’s Medicaid program,” New York Attorney General Letitia James said in a statement.  “We will never let companies get away with illegally billing Medicaid with inflated amounts for prescription drugs."

The investigation into Walgreens stems from a 2012 qui tam action filed in the U.S. District Court for the Southern District of New York, according to James' office. California, Illinois, Indiana, Michigan and Ohio are also part of the settlement with New York Medicaid receiving more than $8 million of the settlement, the Attorney General's Office said. 

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