Walgreens to Pay $106.8 Million in Major Healthcare Fraud Settlement

Retail pharmacy giant Walgreens has agreed to pay $106.8 million to settle allegations of widespread fraud against government health care programs, the U.S. Department of Justice announced on Friday. The settlement resolves claims that Walgreens billed Medicare, Medicaid, and other federal health care programs for prescriptions that were never actually dispensed to patients.

The alleged fraudulent activity spanned over a decade, from 2009 to 2020, during which Walgreens is accused of submitting false claims for payment, resulting in the company receiving tens of millions of dollars for prescriptions that were processed but never picked up by beneficiaries.

Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the gravity of the situation, stating, "We will hold accountable those who abuse these programs by knowingly billing for goods or services they did not provide."

The settlement, which involves both Walgreens Boots Alliance Inc. and Walgreen Co., comes after investigations sparked by whistleblower lawsuits filed under the False Claims Act. Steven Turck, a former Walgreens pharmacy manager, will receive $14,918,675 for his role in exposing the fraud, while Andrew Bustos, a former district pharmacy supervisor, will receive $1,620,000.

Of the total settlement, $91,881,530 will go to the federal government, with an additional $14,933,259 being returned to individual states to reimburse their Medicaid programs.

Notably, Walgreens received credit for self-reporting certain conduct and implementing system enhancements to prevent future occurrences. The company had previously refunded $66,314,790 related to the settled claims, which will be credited against the total settlement amount.

U.S. Attorney Alexander M.M. Uballez for the District of New Mexico highlighted the importance of protecting federal healthcare programs, stating, "We are committed to guarding the public's investment in our health from private corporations."

This case underscores the ongoing efforts to combat healthcare fraud, with the False Claims Act serving as a powerful tool in these investigations. The settlement serves as a stark reminder to healthcare providers of the severe consequences of fraudulent billing practices and the government's commitment to safeguarding taxpayer-funded healthcare programs.

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