Walgreens Sought Claims For Medications Patients Never Picked Up; Will Pay $100 Million

DEERFIELD, IL — Walgreens will pay the government $106.8 million in a settlement related to allegations that the Deerfield-based pharmacy giant billed public health programs for prescriptions that were never dispensed, according authorities.

Walgreens submitted false claims between 2009 and 2020 seeking payment from Medicare, Medicaid and other federal health programs for prescriptions that were processed but not picked up, authorities said, violating the False Claims Act and state statutes. The company received tens of millions of dollars for prescriptions not provided to beneficiaries, according to the U.S. Department of Justice.

“Adopting new technology and systems can be beneficial for providers, beneficiaries, and federal payors, including Medicare, Medicaid and TRICARE,” U.S. Attorney Damien Diggs, of the Eastern District of Texas, said in a news release.

“However, we will not allow companies to hide behind their implementation of ill-conceived technology and systems that result in billing federal health care programs for goods and services never provided to beneficiaries. In those situations, we will pursue the companies and ensure that the taxpayer is made whole.”

Walgreens fixed its electronic pharmacy management system to stop the issue and self-reported “certain conduct,” according to the department, which said the company refunded $66.3 million related to the settled claims and will receive a credit in that amount.

“Due to a software error, we inadvertently billed some government health care programs for a relatively small number of prescriptions our patients submitted but never picked up,” Walgreens said in a prepared statement. “We corrected the error, reported the issue to the government and voluntarily refunded all overpayments.”

The federal government will receive just under $92 million and about $15 million will be returned to states that jointly fund Medicaid programs, according to the department.

The settlement also resolves three whistleblower cases, authorities said. A former Walgreens pharmacy manager will receive just under $15 million and a former Walgreens district pharmacy supervisor will get $1.6 million, according to the department.

To submit a tip about fraud, waste, abuse or mismanagement to the federal government, call 800-447-8477.