Attorney General's News Release

October 13, 1999

Nixon obtains more than $289,000 from Walgreen Co. to settle dispute over prescriptions billed to Medicaid

Jefferson City, Mo. — Attorney General Jay Nixon announced today that his office has obtained more than $289,000 from Walgreen Co. as part of a 25-state settlement that resolves allegations the national retail pharmacy chain submitted false Medicaid claims for prescriptions.

Walgreen will pay a total of $7.6 million to the federal and state governments to settle the allegations that it billed government health care programs for quantities of medication that exceeded what was actually dispensed to customers. The Deerfield, Ill.-based company also has agreed to modify its pharmacy billing operations to ensure future compliance with the law.

The government had alleged that Walgreen dispensed partial prescriptions because of insufficient stock, but billed the health care programs for the full quantities of medication prescribed. The settlement covers the time period of June 1, 1986 to Sept. 1, 1996.

"State and federal cooperation made this agreement possible," Nixon said. "By working together, we were able to recover this money for taxpayers and help protect the integrity of the Medicaid programs."

The Medicaid Fraud Control Unit of the Attorney General's Office participated in the settlement discussions and made it possible for Missouri to obtain its share. The $289,325.78 obtained through Missouri's participation represents both federally and state-funded claims; $107,341.99 has been paid directly to Missouri for the state-funded portion, with $181,983.79 being the federal share.

Participating federal agencies included the Department of Justice, the Inspector General for the Department of Health and Human Services and the U.S. Attorney for the Middle District of Florida.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818