Walgreens agrees to pay $106 million to settle an indictment for defrauding Medicare and Medicaid

The Department of Justice (DOJ) reported that Walgreens reached a settlement valued at $106 million to resolve an indictment for billing Medicaid, Medicare and other health programs for drugs it never dispensed to customers between 2009 and 2020.

This ruling comes after three private parties filed indictments in New Mexico, Texas and Florida. The DOJ alleged that Walgreens restocked and remarketed drugs, while submitting misleading payment claims, in violation of the False Claims Act.

"Federal health care programs provide critical health care services to millions of Americans. We will hold accountable those who abuse these programs by knowingly billing for goods or services they did not provide," said Senior Deputy Assistant Attorney General Brian M. Boynton, head of DOJ's Civil Division.

"Millions of Americans rely on the promise of federal healthcare through programs like Medicare and Medicaid. Fraudulently billing for prescriptions which are never dispensed endangers the integrity of these critical programs. We are committed to guarding the public’s investment in our health from private corporations," said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico.

Walgreens blamed the problems on electronic management failures, reported the Associated Press. The company assured that it has already improved its software to prevent it from causing similar problems. The DOJ claims the company cooperated in the investigation.