Walgreen Co. Consented to Reimburse 3.5 Million U.S. Dollars to Resolve Accusations Under the False Claims Statute

Walgreen Co. Consented to Reimburse 3.5 Million U.S. Dollars to Resolve Accusations Under the False Claims Statute

On 23rd January 2019, Matthew D. Krueger, United States Attorney, reported that Walgreen Co. has consented to reimburse 3.5 million U.S. dollars to the State of Wisconsin and the United States to resolve accusations that Walgreens Co. breached the False Claims Act by submitting submissions to the Medicaid program for intoxicant drugs without observing the Medicaid policies intended to make sure that intoxicants are distributed for proper medical treatment.

Walgreens Co. controls retail dispensaries all over Wisconsin State.  The Wisconsin Medicaid program will pay a pharmacy for distributing certain intoxicant drugs only if the pharmacy initially proves with the prescribing doctor that the doctor wrote the intoxicant for medically proper treatment, like for attention deficit disorder treatment.  The False Claims Statute bars a pharmacy from intentionally submitting claims for reimbursement for drugs in breach of Medicaid’s laws.

The State of Wisconsin and the United States purport that, between 2011 and 2014, Walgreens Co. breached Wisconsin Medicaid guidelines by regularly distributing intoxicant drugs to Wisconsin Medicaid payees first by not confirming that the prescribing doctor ordered the drug for medically suitable treatment.  The State of Wisconsin and the United States also purport that, by not proving that drugs were prescribed for apt treatment, Walgreens Co. distributed and charged Wisconsin Medicaid for medically unnecessary drugs.

Matthew D. Krueger, United States Attorney, stated that Pharmacies perform a significant gate-keeping role in the Medicaid program to make sure that the millions of U.S. dollars used every year to purchase medications that are medically required. Krueger added that the resolution shows that the Justice Department will hold accountable their pharmacies for their criminal actions.

Lamont Pugh III, Special Agent-in-Charge for the HHS-OIG (Department of Health and Human Services- Office of Inspector General) – Chicago Region, stated that the distribution of any type of drugs require to be done while observing all rules and regulations and with proper authentication to make sure the medical requirement of the treatment. Pugh added that the resolution comprises an Office of Inspector General Corporate Integrity Deal that involves stipulations, like multi-site claims audit to be carried out by an Independent Review Organization, that pursue to support obedience to Federal health care program policies. Pugh assured that the Office of Inspector General would collaborate with their local, state, and federal law enforcement partners to safeguard the health and safety of Medicaid patients and important taxpayer funds.

Justin Tolomeo, Special Agent-in-Charge of the Federal Bureau of Investigations (FBI), stated that the Federal Bureau of Investigation prioritizes consumers’ protection and will persistently hold healthcare givers who abuse the Medicaid program accountable. Tolomeo further added that the 3.5 million U.S. dollars resolution indicates that violations of Medicaid laws substantially affect the health care industry and taxpayer dollars.

Michael Carter, United States Assistant Attorney, represented the United States government in this case.  The OIG (Office of Inspector General), the Federal Bureau of Investigations, and the Wisconsin Department of Justice Medicaid Fraud Control and Elder Abuse Unit supported the investigation of this case. The settlement deal only carries accusations; Walgreens Co. doesn’t admit responsibility for any of the charges.

Violating the Anti-Kickback Act, the False Claim Statute, and the Controlled Substance Act is harshly punished by the law. Also, scheming to commit health care fraud like defrauding taxpayer-funded health care plans, such as Medicaid, TRICARE, or Medicare programs, is a severe crime. Any individual who executes these crimes violates the law and is sternly penalized or fined if found liable for the accusations. When charged with these crimes, you should search for the best legal advice or representation to protect and pursue your rights. Hire our highly qualified team of the finest defense and criminal attorneys if you required highly exceptional legal representation and assistance, which will result in achieving positive results for your issue. Health Care Fraud Group comprises an experienced team of lawyers with tremendous experience in handling Health Care Fraud related issues related to the Federal Health Care System; they are highly knowledgeable about civil and federal matters. The defense attorneys are well recognized across the nation due to their excellent and remarkable work and professionalism when dealing with health care fraud matters and investigations. Our attorneys are well-equipped with past knowledge of each aspect of Health Care fraud defense, medical, and legal issues.

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