In a significant development, Walgreens Boots Alliance, Inc., one of the nation’s largest retail pharmacy chains, has agreed to pay $97.8 million to resolve allegations that it unlawfully billed government healthcare programs for prescriptions that were never collected by patients.
Allegations and Settlement Details
Between 2009 and 2020, Walgreens allegedly submitted claims to Medicare, Medicaid, and other federal healthcare programs for prescriptions that were processed but never picked up by beneficiaries.
This practice purportedly led to Walgreens receiving payments for medications that were never dispensed, resulting in tens of millions of dollars in improper reimbursements.
The settlement addresses these allegations, with Walgreens agreeing to the $97.8 million payment. Notably, the company received credit for self-disclosing certain claims and for previously refunding $66.3 million related to the settled allegations.
State Involvement and Recoveries
The settlement was a collaborative effort involving the U.S. Department of Justice and attorneys general from all 50 states.
The total recovery allocated to Medicaid programs across these states amounts to $9.6 million. For instance, the State of Connecticut is set to receive $728,083.37 in restitution and other recoveries.
Similarly, the State of Kansas will receive $10,000 based on the number of unfilled prescriptions within the state.
Walgreens’ Response and Corrective Actions
In response to the allegations, Walgreens has implemented enhancements to its billing systems to prevent future occurrences of unlawful billing for uncollected prescriptions.
The company stated that a software error led to inadvertent billing for prescriptions that patients submitted but never collected. Upon identifying the issue, Walgreens corrected the error, reported it to the government, and voluntarily refunded all overpayments.
This settlement underscores the critical importance of accurate billing practices within the healthcare industry. Walgreens’ agreement to pay $97.8 million reflects the serious nature of the allegations and the company’s commitment to rectifying the issue.
The case also highlights the role of state and federal agencies in ensuring accountability and integrity in billing processes, safeguarding taxpayer funds, and maintaining trust in public healthcare programs.