Rutledge Reaches Settlement with Walgreen Company
February 15, 2017
Arkansas to receive nearly $95,000
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge has joined with the federal government and other states to settle allegations that the Walgreen Co., or Walgreens, unlawfully solicited and allowed Medicare and Medicaid beneficiaries to enroll in its Prescription Savings Club program in order to encourage such individuals to self-refer prescriptions to Walgreens’ pharmacies.
“Walgreens allegedly encouraged Arkansans to enroll in a program that claimed cost savings but in reality only helped the company pad their bottom line with Medicare and Medicaid reimbursements,” said Attorney General Rutledge. “Arkansans deserve to be treated honestly and fairly especially when it comes to prescription drug costs.”
The alleged conduct by Walgreens constitutes a clear violation of federal and state anti-kickback statutes. Walgreens, a Delaware corporation headquartered in Deerfield, Illinois, will pay the states and the federal government $50 million, of which Arkansas will receive $94,634.35 for the Arkansas Medicaid Program to resolve civil allegations that Walgreens submitted false claims to that program arising out of its unlawful kickback marketing scheme.
The investigation resulted from an action originally filed in January 2012 in the U.S. District Court for the Southern District of New York under the federal False Claims Act and various state false claims statutes.
A National Association of Medicaid Fraud Control Units team participated in the investigation and conducted the settlement negotiations with Walgreens on behalf of the states. The team included representatives from the Offices of the Attorneys General for the states of California, Illinois, Indiana, Massachusetts, Michigan and New York.