ATLANTA — Convenience store and pharmacy company Walgreens will pay nearly $3 million to settle allegations of overbilling Medicaid programs in Georgia and Massachusetts.
The U.S. Department of Justice announced the settlement Thursday, saying the company had agreed to pay $2.8 million to resolve allegations that it violated the federal, Massachusetts and Georgia False Claims Acts by submitting inflated prices for some generic medications to Medicaid programs in both states.
The allegations were related to claims brought by a whistleblower, known as a relator, who sued on behalf of the government.
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According to the DOJ, the federal government and the states of Georgia and Massachusetts alleged that for 15 years, Walgreens pharmacies submitted higher prices to MassHealth, the Massachusetts Medicaid program, and Georgia’s Medicaid program for the generic medications in question.
The allegations accused the company of doing this from 2008 to 2023. Both Medicaid programs require that Walgreens pharmacies dispense medications using the lowest of four reported price points, with that being the “usual and customary price.”
Walgreens was accused in court of 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.”
Walgreens shall pay the state of Georgia $352,134.38 plus interest, according to the settlement agreement. The agreement also says that once the state of Georgia receives the settlement amount, and as soon as feasible after receipt, the state of Georgia shall pay $61,623.52 plus interest to the relator.
Walgreens’ settlement agreement said the company will have 30 days to provide payment once the settlement is approved.
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