Walgreen Co., commonly known as Walgreens, has consented to pay over $2.8 million to settle charges that it overcharged the Massachusetts and Georgia Medicaid programs by submitting inflated prices for certain generic medications. Allegations claim that Walgreens reported higher "usual and customary prices" than necessary, leading to unwarranted payments by MassHealth and Georgia Medicaid, programs designed to cover medical costs for low-income individuals.
The period in question spans from 2008 to 2023. During this time, it is alleged that Walgreens did not provide the correct customary prices for certain medicines. Typically, Medicaid programs reimburse pharmacies based on the lowest of several price points, including what the pharmacy is willing to accept on the date of service.
The resolution came about partly due to a whistleblower lawsuit filed under the qui tam provisions of related False Claims Acts in the United States, Massachusetts, and Georgia. These acts allow private individuals to file on behalf of the government and potentially share in any recovery.
Government officials released statements regarding the settlement, with U.S. Attorney Leah B. Foley, Massachusetts Attorney General Andrea Joy Campbell, Georgia Attorney General Christopher M. Carr, and Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, all making announcements.
Handling the matter were Assistant U.S. Attorney Steven Sharobem of the U.S. Attorney’s Office Affirmative Civil Enforcement Unit, Assistant Attorney General Ian Marinoff, and Analyst Will Welsh from the Massachusetts Attorney General's Medicaid Fraud Division. The Georgia Attorney General's office was represented by Assistant Attorney General Richard Tangum, and the Illinois Attorney General's office by Assistant Attorney General Heather D’Orazio.
