The Attorney General’s office for the state of New York announced that the corporation that owns Walgreens has agreed to pay $209.2 million to settle allegations that the pharmacy chain routinely overbilled Medicare and Medicaid for insulin pen prescriptions.
According to the New York Attorney General, Walgreens Boots Alliance (Walgreens) admits that it routinely dispensed insulin pens in boxes of five when prescriptions called for less insulin during the billing period. The pharmacy chain would then bill Medicare and Medicaid programs for the extra amount between 2006 and 2017. When state Medicaid program denied claims for the amount billed, Walgreens would then alter how many days’ worth of insulin it provided in a prescription to conform to Medicaid limits.
This case was opened in response to a whistleblower-initiated lawsuit in 2015.
The federal government will receive approximately $120 million under the settlement, while roughly $89.2 million will be dispersed to state Medicaid programs to offset the effects of the overbilling. The settlement announcement did not quantify the additional revenue that Walgreens might have received under the scheme.
You can read the full announcement here.
h/t to blogger Scott Strumello for tweeting about this settlement.
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