JONESBORO, AR (KAIT) - Walgreens will pay the state of Arkansas more than $1 million to settle allegations of Medicaid fraud.
Attorney General Leslie Rutledge announced the settlements Tuesday.
The first settlement, she said, resolves allegations that the pharmacy under-reported the number of days insulin pens should last for patients following the prescribed directions.
Rutledge said this caused the federal government and state Medicaid programs to pay for more insulin than some patients needed.
Under the terms of the settlement, Arkansas will receive $127,966.49 of a $209.2 million settlement.
Walgreens was also accused of submitting higher than usual claims to state Medicaid programs through the Prescription Savings Club program.
The attorney general said the company charged higher prices than it did for those customers who did not participate in the program.
Walgreens agreed to a $60 million settlement, of which Arkansas will receive $926,873.28.
“Walgreens took advantage of Medicaid and its patients with their unacceptable business practices,” Rutledge said. “Walgreens must be held accountable for their actions which hurt patients and taxpayers.”
The settlements were negotiated by several states’ Medicaid Fraud Control Units and the National Association of Medicaid Fraud Control Units, the release stated.