Press Release  AG Healey Reaches Settlements Totaling $2 Million with Walgreens for Overcharging MassHealth for Prescriptions

Boston — Attorney General Maura Healey announced today that Walgreens has entered into two separate settlement agreements to resolve allegations that it overcharged MassHealth for prescriptions.

“Walgreens repeatedly failed to provide MassHealth with accurate information regarding its dispensing and billing practices, resulting in overpayment to the company at taxpayers’ expense,” said AG Healey. “We will continue to investigate cases of fraud and take action to protect the integrity of MassHealth.” 

Under the first settlement, Walgreens will pay $774,486 to resolve allegations that it submitted claims to MassHealth in which it reported prices for certain prescription drugs at levels that were higher than what Walgreens actually charged, resulting in fraudulent overpayments.

Under the second settlement, Walgreens will pay $1,437,366 to resolve allegations that from January 2006 through December 2017, rather than dispensing the quantity of insulin called for by a patient’s prescription, Walgreens exceeded the prescription amount and falsified information on claims submitted for reimbursement to MassHealth, including the quantity of insulin and/or days’ supply dispensed.

These settlements both arise from qui tam (whistleblower) actions originally filed in the United States District Court for the Southern District of New York under the federal False Claims Act. Walgreens is a national pharmacy chain with over 260 locations in Massachusetts.

 In the AG’s office, these matters were handled by Assistant Attorneys General Robyn Dollar, Stephany Collamore, and Jennifer Goldstein of the AG’s Medicaid Fraud Division. Stephany Collamore worked with one of the National Association of Medicaid Fraud Control Unit (NAMFCU) Teams which investigated and settled these cases. 

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