Walgreens has agreed to pay $106 million to settle lawsuits alleging the pharmacy chain submitted false payment claims to government health care programs for prescriptions that were never dispensed. The settlement, announced on Friday, resolves cases filed in New Mexico, Texas, and Florida by whistleblowers who worked within the company’s pharmacy operations.
False Claims Act Lawsuits Filed by Whistleblowers
The lawsuits were brought under the whistleblower provisions of the False Claims Act, which allows private individuals to file lawsuits on behalf of the U.S. government and share in the recovery of funds. The complaints accused Walgreens of submitting false payment claims to federal health care programs, including Medicare and Medicaid, for prescriptions that were processed but never picked up by patients between 2009 and 2020.
The whistleblowers who initiated the lawsuits worked within Walgreens’ pharmacy operations and claimed the company billed government programs for prescriptions that were never dispensed. The U.S. Justice Department confirmed these allegations and said the settlement helps to resolve the claims.
Walgreens’ Response and Cooperation
Walgreens cooperated with the investigation and has since implemented improvements to its electronic management system to prevent similar issues from recurring, according to settlement documents.
In a statement, the company explained that the false claims were the result of a software error that inadvertently billed government health programs for a small number of prescriptions that patients never picked up. Walgreens emphasized that it took corrective action, reported the issue to the government, and voluntarily refunded all overpayments.
“We corrected the error, reported the issue to the government, and voluntarily refunded all overpayments,” Walgreens said in the statement.
Settlement Without Admission of Liability
Despite the settlement, Walgreens did not admit to any legal liability in the case. The company’s statement attributed the issue to unintentional billing errors and highlighted its commitment to ensuring proper billing practices moving forward.
The whistleblowers involved in the lawsuit will receive a portion of the settlement as part of the False Claims Act’s provisions, which incentivize private parties to report fraud against government programs.
This settlement highlights the importance of oversight in billing practices within major pharmacy chains and the critical role whistleblowers play in bringing such issues to light.
