Walgreens to pay $106M to settle claims of double-billing Medicare, Medicaid

Walgreens agreed to pay $106 million to settle lawsuits accusing the pharmacy chain of fraudulently billing government health programs for prescriptions that were never dispensed. Three former Walgreens employees filed the lawsuits in New Mexico, Texas and Florida under the False Claims Act. This act allows individuals to sue on behalf of the U.S. government and share in the recovery of money.

The whistleblowers alleged that from 2009 to 2020, Walgreens billed Medicare, Medicaid and other federal health programs for prescriptions that pharmacists processed but patients never picked up. Instead of canceling the claims for uncollected medications, Walgreens allegedly restocked and resold the drugs, effectively receiving payment twice.

"Due to a software error, we inadvertently billed some government health care programs for a relatively small number of prescriptions our patients submitted but never picked up," a Walgreens spokesperson said in a statement to Fox Business . "We corrected the error, reported the issue to the government, and voluntarily refunded all overpayments. We appreciate that the government acknowledged our compliance efforts as part of resolving this matter."

Settlement documents indicate that Walgreens cooperated with the investigation and has since improved its electronic management system to prevent such issues in the future.

"This settlement marks another major achievement in our ongoing commitment to combat health care fraud," U.S. Attorney Roger Handberg told Fox Business. "It is essential to hold pharmacies accountable when they knowingly fail to abide by the rules and requirements of our national health care programs."

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