Walgreens has agreed to pay $2.8 million to settle allegations that it submitted inflated prices to the Massachusetts and Georgia Medicaid programs for generic medications.
The settlement agreement resolves a whistleblower, or qui tam, lawsuit alleging that the national pharmacy chain violated the federal, Massachusetts and Georgia False Claims Acts by submitting those prices, the U.S. Justice Department said in a Thursday (March 27) press release.
“The United States, Massachusetts and Georgia allege that, between 2008 and 2023, Walgreens’ pharmacies submitted a higher usual and customary price to the MassHealth and Georgia Medicaid programs for certain generic medications at certain times,” the release said. “By failing to report the correct usual and customary price, Walgreens’ pharmacies allegedly caused the MassHealth and Georgia Medicaid programs to pay more for these generic medications than they should have.”
Reached by PYMNTS, Walgreen Co. declined to comment.
The Justice Department said in a January press release: “The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the United States or knowingly fail to pay money owed to the United States.”
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