Walgreens to pay $106.8M for false government prescription claims

Walgreens Boots Alliance has agreed to pay a substantial fine of $106.8 million to resolve allegations from the Department of Justice regarding improper billing practices. The claims assert that between 2009 and 2020, the pharmacy chain submitted false claims to federal health care programs, including Medicare and Medicaid, for prescriptions that were never actually dispensed to patients. Instead of canceling these claims for uncollected medications, Walgreens restocked and resold the drugs, effectively receiving double payment for the same prescriptions. The U.S. Attorney for the Middle District of Florida emphasized the importance of holding pharmacies accountable for compliance with national health care program regulations. Walgreens, while not admitting liability, acknowledged a software error that led to the erroneous billing and stated that they had corrected the issue and reported it to the government. The company also voluntarily refunded overpayments, totaling more than $66 million, prior to this settlement. In response to the allegations, Walgreens has taken steps to enhance its electronic pharmacy management system to prevent future occurrences of similar issues. The government recognized these compliance efforts as part of the resolution process, indicating that Walgreens cooperated with the investigation and self-reported some of the problems. This settlement highlights ongoing efforts by the Department of Justice to combat health care fraud and ensure accountability among pharmacies and other health care providers. The case serves as a reminder of the importance of ethical practices in the pharmaceutical industry and the need for vigilance in monitoring compliance with health care regulations.