Walgreens to Pay $269 Million for FCA Violations, Overbilling Medicaid for Prescription Drugs

Walgreens agreed to pay nearly $270 million to settle allegations that the pharmacy giant violated the False Claims Act and overbilled Medicaid for prescription drugs.

The allegations, filed by the U.S. Attorney for the Southern District of New York, claim that the retailer dispensed boxes of insulin injector pens containing five pens regardless of patient needs rather than dispensing the dosage prescribed by physicians.

This left Medicare and Medicaid beneficiaries with more insulin than they were prescribed and Walgreens billed the federal programs accordingly.