Florida recovers $1.5 million from Walgreen Co. in Medicaid settlement

Florida recovers $1.5 million from Walgreen Co. in Medicaid settlement

POSTED 09/30/2008 - Attorney General Bill McCollum today announced that Florida has recovered more than $1.5 million as part of a state and federal settlement with Walgreen Co., an Illinois-based national retail pharmacy chain which operates as Walgreens. The company will pay the United States, Florida, Massachusetts, Michigan and Minnesota a total of $9.9 million to resolve allegations the company falsely billed the Medicaid program.

"This substantial recovery of funds will help ensure the continued availability of Medicaid funds which provide basic health care products and services for those who need it most," said Attorney General Bill McCollum.

The U. S. Department of Justice initiated the investigation in response to a whistleblower action brought by two Walgreens pharmacists under the Federal False Claims Act. A similar civil action was brought in Leon County, Florida, pursuant to the Florida False Claims Act. Florida’s civil case was handled by the Attorney General’s Complex Civil Enforcement Bureau which is part of the Medicaid Fraud Control Unit.

The investigation revealed allegations that Walgreens submitted false claims to the Florida Medicaid program for prescription drugs dispensed to individuals covered by both Medicaid and private third-party insurance plans. Despite the third-party insurance coverage, Walgreens made the claims to the Medicaid program and obtained reimbursements for more than it was entitled to receive.

Of Florida’s share of the settlement, the state’s Medicaid program will receive approximately $300,000 in recoveries, and over $220,000 will be awarded to the state’s general revenue fund.

The case was handled jointly by the U.S. Justice Department's Civil Division and the United States Attorney's Office for the District of Minnesota, as well as the Attorneys General for the states of Florida, Massachusetts, Michigan and Minnesota, with investigative assistance provided by the Office of the Inspector General, Department of Health.