Walgreens settles over ‘savings club’ claim

http://myjournalcourier.com/news/105609/walgreens-settles-over-savings-club-claim

Normally violating Medicare/Medicaid anti-kickback laws results in a 5 yrs in prison and $25,000 fine for EACH VIOLATION… who at Walgreens is going to JAIL ?

Illinois has joined at least 30 other states and the federal government to settle allegations that Walgreen Co. unlawfully solicited and persuaded Medicare and Medicaid recipients to enroll in its “Prescription Savings Club” to gain more profitable customers.

Such a move would be a violation of federal and state anti-kickback laws, according to Attorney General Lisa Madigan.

Walgreen Co., headquartered in Deerfield, gave Medicare and Medicaid patients savings, coupons and other offers to join the company’s prescription savings club, which amounted to an unlawful marketing scheme, Madigan contends. Walgreens will pay the states and the federal government $50 million, of which nearly $8.5 million will go to state Medicaid programs. The remaining portion of the settlement is attributed to Medicare and Tricare programs.

Illinois will receive more than $740,000 in restitution and other recoveries from the settlement.

The investigation resulted from a false claims action originally filed in January 2012 in U.S. District Court for the Southern District of New York under the federal False Claims Act and various state false claims statutes.

Deputy Bureau Chief Heather Tullio D’Orazio with Madigan’s Medicaid Fraud Bureau led a National Association of Medicaid Fraud Control Units team that participated in the investigation and conducted the settlement negotiations with Walgreen on behalf of the states.

Filed under: General Problems