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Attorney General Josh Stein Reaches $209.2 Million Settlement with Walgreens Boots Alliance

Release date: 3/20/2019

(RALEIGH) Attorney General Josh Stein today announced that he has reached a $209.2 million settlement with Walgreens Boots Alliance (Walgreens) over allegations that the company knowingly engaged in fraudulent over-dispensing of insulin pens to Medicare and Medicaid beneficiaries. Attorney General Stein is joined in this settlement by the federal government, all other 49 states, and the District of Columbia.
“Companies that misuse the Medicaid program are misusing taxpayer money,” said Attorney General Josh Stein. “My office will continue to hold organizations responsible when they engage in fraudulent and wasteful practices.”
The settlement resolves allegations that from January 1, 2006, through December 31, 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 Medicare and Medicaid, including the quantity of insulin and/or days’ supply dispensed. This resulted in state Medicaid programs paying for a substantial number of claims that the programs would not have approved if Walgreens had reported the correct supply of medication based on the prescription.  
Under the settlement, Walgreens will pay the federal government and the states $209.2 million. Of this amount, $89,185,625.10 will go to the state Medicaid programs to resolve civil allegations. North Carolina will receive $2,316,372.93 in restitution and other recoveries.
A National Association of Medicaid Fraud Control Units (NAMFCU) team conducted the investigation and participated in the settlement negotiations with Walgreens on behalf of the states. The North Carolina settlement agreement was reached by the Medicaid Investigations Division of the North Carolina Department of Justice and the North Carolina Division of Health Benefits.
About the Medicaid Investigations Division (MID)
The Attorney General’s MID investigates fraud and abuse by healthcare companies and providers, as well as patient abuse and neglect in facilities that are funded by Medicaid. Medicaid is a joint federal-state program that helps provide medical care for people with limited income. To date, the MID has recovered more than $500 million in restitution and penalties for North Carolina.
To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.

Laura Brewer (919) 716-6484

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