Walgreens Agrees to Pay About $2.8 Million to Resolve Medicaid-Overbilling Allegations

Dow Jones03-27

By Sabela Ojea

Walgreens agreed to pay about $2.8 million to the federal government and the states of Massachusetts and Georgia to settle allegations that the company inflated prices for generic medications covered by Medicaid.

The settlement resolves, in part, the claims that, between 2008 and 2023, the pharmacy chain caused Massachusetts' MassHealth and Georgia Medicaid programs to pay more for these generic medications than they should have, the Justice Department said Thursday.

During those years, Walgreens's pharmacies submitted a higher usual and customary price to both Medicaid programs for certain generic medications at certain times, according to the Justice Department.

MassHealth and the Georgia Medicaid program are jointly funded and administered federal and state programs that cover medical costs, including medication costs, for people with limited income.

As part of the agreement, Walgreens will pay $859,134 to the U.S., $216,698 to the state of Georgia, and $683,101 to Massachusetts.

Walgreens declined to comment on the settlement.

The agreement represents the latest Medicaid-related settlement reached by Walgreens.

Last September, Walgreens Boots Alliance agreed to pay a combined $106.8 million to the federal government and states for submitting claims to federal healthcare programs for prescriptions it never dispensed, resolving three cases pending in the District of New Mexico, Eastern District of Texas and Middle District of Florida.

Earlier this month, Walgreens agreed to be taken private by an affiliate of Sycamore Partners in a deal with an equity value of around $10 billion.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

March 27, 2025 13:22 ET (17:22 GMT)

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Walgreens Agrees to Pay About $2.8 Million to Resolve Medicaid-Overbilling Allegations

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