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Walgreens reaches $8 million settlement with Justice Department
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04/20/12 12:26 PM ET
The Walgreens pharmacy chain will pay nearly $8 million to settle charges that it offered illegal promotions to Medicare and Medicaid beneficiaries.
The Justice Department said Friday that the settlement is a clear sign the federal government will crack down on retail pharmacies in its quest to root out healthcare fraud.
Walgreens offered customers a $25 gift card if they moved their prescriptions to a Walgreens pharmacy. Federal law prohibits such benefits from being offered to people enrolled in Medicare, Medicaid or any other federal healthcare program, including programs for veterans and federal employees.
Walgreens acknowledged those restrictions in its marketing materials but then handed out gift cards anyway to people who got their coverage through the government, the Justice Department alleged.
“This settlement makes clear that corporations seeking increased profits over their patients' needs will pay a substantial price,” said Daniel R. Levinson, inspector general for the Health and Human Services Department.
The Justice Department said Friday that the settlement is a clear sign the federal government will crack down on retail pharmacies in its quest to root out healthcare fraud.
Walgreens acknowledged those restrictions in its marketing materials but then handed out gift cards anyway to people who got their coverage through the government, the Justice Department alleged.
“This settlement makes clear that corporations seeking increased profits over their patients' needs will pay a substantial price,” said Daniel R. Levinson, inspector general for the Health and Human Services Department.
