Walgreens to pay $2.8 million in alleged Medicaid overbilling lawsuit
BOSTON — Walgreens has agreed to pay over $2.8 million in settlement agreements in violation of federal, Georgia and Massachusetts False Claim Acts. The settlement alleges Walgreen Co. inflated prices for generic medications to Georgia and Massachusetts Medicaid programs.
Both the Georgia and Massachusetts Medicaid programs are jointly funded and administered programs that cover medical costs, including medication costs for people with limited income.
The programs reimburse pharmacies for distributing generic medication at the lowest of four price points. One of the price points is the 'usual and customary price' which is generally the amount a pharmacy is willing to take.
The lawsuit alleges that, between 2008 and 2023, Walgreens' pharmacies submitted a higher 'usual and customary price' to the MassHealth and Georgia Medicaid programs for certain generic medications at certain times. By failing to report the correct price, Walgreens' pharmacies allegedly caused both programs to pay more for generic medications than they should have.
Under the Georgia, Massachusetts and federal False Claims Acts, private parties may sue on behalf of the government and receive a share of a recovery.
WRBL has reached out to the Georgia Attorney General's office, but has not received a comment at this time.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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