A settlement has been reached to resolve False Claims Act allegations against Walgreen Co.
The allegations arose from a lawsuit that claimed Walgreen Co. knowingly submitted claims for reimbursement to California’s Medi-Cal program that were not supported by applicable diagnosis and documentation requirements.
Allegedly, Walgreens improperly billed Medi-Cal for certain prescription drugs, "Code 1" drugs, appearing on Medi-Cal's formulary list. As alleged, Walgreens knowingly failed to comply with applicable "Code 1" drug restrictions and documentation requirements by failing to ensure that the drugs were prescribed for the requisite diagnoses prior to dispensing the drugs to Medi-Cal beneficiaries.
Reportedly, the allegations resolved by this settlement were first raised in two lawsuits filed by a former Walgreens pharmacist and a former pharmacy technician. The whistleblowers will receive roughly $2.3 million as part of the settlement.
“This settlement illustrates our commitment to protect the integrity of California’s Medi‑Cal program,” said U.S. Attorney Talbert. “Regulations like those at issue here protect both critical funding and beneficiaries served. My office will continue working to ensure that pharmacies comply with these regulations.”
