Walgreens Settles Case for $35 million Involving Overcharing Medicaid
In a knock to its national reputation, Walgreens settles a case in which it defrauded consumers and medicaid. The Hartford Courant highlights:
Walgreens has agreed to pay $35 million to 42 states, Washington, D.C., Puerto Rico and the federal government to settle allegations it switched the form of three generic drugs it dispensed, between capsules and tablets, to overcharge the Medicaid program.
Connecticut will receive $126,488 from the settlement announced Wednesday, Attorney General Richard Blumenthal said.
Walgreens is the third pharmacy chain to settle a whistle-blower lawsuit by Illinois pharmacist Bernard Lisitza involving generic drug switching, which spurred a federal-state investigation. CVS Caremark paid $37 million to settle this year, and Omnicare Inc., the nation’s largest pharmacy company for nursing homes, paid $50 million in late 2006.
Walgreens, when dispensing for people on Medicaid, allegedly switched prescriptions for ranitidine, the generic form of anti-ulcer drug Zantac, from 150 mg or 300 mg tablets to capsules so it could charge more.
The pharmacies allegedly substituted tablets of fluoxetine — the generic of anti-depressant Prozac — for 10 or 20 mg capsules. Also, capsules were allegedly substituted for 5 mg tablets of selegiline — the generic of Eldepryl, used to treat Parkinson’s disease and senile dementia. Walgreens was accused of making the switches from July 2001 through 2005.
Hopefully, other companies will avoid the ethically suspect character of Walgreens and opt for the ethical highroad for business practice. No one wants to be the next ENRON.