Attorney General Josh Stein today announced that he has reached a $60 million settlement with Walgreens Co. over allegations that the company violated the False Claims Act by billing Medicaid at rates higher than its usual and customary rates. Attorney General Stein is joined in this settlement by the federal government and 45 other states. As part of the settlement, North Carolina will receive $3,382,859.11 in restitution and other recoveries.
“Today, we held Walgreens accountable for over billing Medicaid. That’s illegal,”
said Attorney General Josh Stein,
“My office will continue our vigilance against fraud and waste because when companies cheat the Medicaid program, they cheat taxpayers.”
The settlement resolves allegations related to the Prescription Savings Club (PSC), Walgreens’ discount drug program. An investigation revealed that Walgreens submitted claims to the states’ Medicaid programs that identified usual and customary prices for certain prescription drugs sold through PSC that were higher than what Walgreens actually charged for those drugs. In doing so, Walgreens obtained more money in reimbursements from the states’ Medicaid programs than it was entitled to receive.
A National Association of Medicaid Fraud Control Units (NAMFCU) Team conducted the settlement negotiations with Walgreens on behalf of the states. The North Carolina settlement agreement was reached by the Medicaid Investigations Division of the North Carolina Department of Justice and the North Carolina Division of Health Benefits.
About the Medicaid Investigations Division (MID)
The Attorney General’s MID investigates fraud and abuse by healthcare companies and providers, as well as patient abuse and neglect in facilities that are funded by Medicaid. Medicaid is a joint federal-state program that helps provide medical care for people with limited income. To date, the MID has recovered more than $500 million in restitution and penalties for North Carolina.