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Walgreens reaches $2 million settlements to resolve alleged overcharging MassHealth for prescriptions

State AG

By Marian Johns | Feb 12, 2019

Law money 13

BOSTON — The state of Massachusetts has reached two settlement agreements with Walgreens totaling $2 million to resolve charges the drugstore chain overcharged the state's Medicaid and Children's Health Insurance Program (MassHealth) for prescriptions. 

According to the Massachusetts Attorney General's Office, one settlement resolves allegations that Walgreens submitted false claims to MassHealth that included higher prescription prices than the company actually charged. Walgreens' additional settlement with the state resolves claims the company exceeded insulin prescription amounts and falsely billed MassHealth for reimbursement, the Attorney General's Office said.

“Walgreens repeatedly failed to provide MassHealth with accurate information regarding its dispensing and billing practices, resulting in overpayment to the company at taxpayers’ expense,” Massachusetts Attorney General Maura Healey said in a statement.  “We will continue to investigate cases of fraud and take action to protect the integrity of MassHealth.” 

According to the first settlement, Walgreens agreed to pay $774,486 and under the second settlement, the company has agreed to pay $1,437,366, Healey's office said. 

The charges against Walgreens stem from Whistleblower claims filed in U.S. District Court for the Southern District of New York, alleging False Claims Act violations, according to the Attorney General's Office. 

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