Walgreens Settles Allegations of Submitting Inflated Prices to Medicaid Programs

Core Viewpoint - Walgreens has agreed to pay $2.8 million to settle allegations of submitting inflated prices to Medicaid programs in Massachusetts and Georgia for generic medications [1][2]. Group 1: Settlement Details - The settlement resolves a qui tam lawsuit alleging violations of the federal, Massachusetts, and Georgia False Claims Acts by Walgreens [1]. - The allegations state that between 2008 and 2023, Walgreens pharmacies submitted higher usual and customary prices for certain generic medications, leading to overpayments by Medicaid programs [2]. Group 2: False Claims Act Context - The False Claims Act imposes treble damages and penalties for knowingly false claims against the United States [3]. - In the fiscal year ending September 30, 2024, settlements and judgments under the False Claims Act exceeded $2.9 billion, with 588 settlements and judgments involving whistleblowers filing 979 qui tam lawsuits [3]. Group 3: Healthcare Industry Impact - Healthcare-related matters, including pharmacies, accounted for $1.67 billion of the total $2.9 billion in False Claims Act settlements and judgments [4]. - The number of qui tam lawsuits filed was the highest in a single year, with the second-highest number of settlements and judgments recorded [4]. Group 4: Previous Allegations Against Walgreens - Walgreens and its parent company, Walgreens Boots Alliance, previously agreed to pay $106.8 million to resolve allegations of billing government healthcare programs for prescriptions that were never dispensed [5]. - The government alleged that from 2009 to 2020, Walgreens received tens of millions of dollars for prescriptions processed but not picked up by beneficiaries [5].