Walgreens to pay $60 million in Medicaid false claims act allegations

PIERRE, S.D. — Walgreens has agreed to pay $60 million in a nationwide settlement that includes South Dakota.

The settlement comes after the company was investigated for submitting claims to state Medicaid programs that priced certain prescription drugs as higher than what it actually charged for them.

This resulted in Walgreens collecting more money in reimbursements from the Medicaid programs than it was entitled to.

The claims were submitted specifically in relation to a Walgreens discount drug program, known as the Prescription Savings Club, or PSC.

The settlement alleges that Walgreen Co.’s actions violated the False Claims Act.

Walgreens will pay $32,052,268.41 to the federal government and $27,947,731.59 to the states involved in the agreement.

South Dakota will receive $184,775.16, of which $109,949.08 will be retained by the federal government as the federal Medicaid share.

The remaining $74,826.08 will go into the state general fund to offset alleged Medicaid damages specific to this case.


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