State settles with Walgreens on Medicaid fraud cases involving insulin pens and price gouging

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CONCORD, NH – Attorney General Gordon J. MacDonald announces that New Hampshire has reached two separate agreements with Walgreens Boots Alliance and Walgreen Co. for allegations of fraudulent over-dispending of insulin pens to Medicaid beneficiaries and for violations under the Medicaid False Claims Act.

The first agreement resolves allegations that Walgreens Boots Alliance knowingly engaged in fraudulent over-dispensing of insulin pens to Medicare and Medicaid beneficiaries between January 1, 2006 and December 31, 2017. Under this settlement, Walgreens will pay the United States and the states $209.2 million and of that sum, $89,185,625.10 will go to the state Medicaid programs.  The State of New Hampshire will receive $101,945.57 in restitution and other recovery.

A second settlement resolves allegations that Walgreens Co. violated the False Claims Act by billing Medicaid at rates higher than its usual and customary rates. Walgreens will pay the states $60 million, all of which is attributable to the states’ Medicaid programs. New Hampshire will receive $186,042.35.

The National Association of Medicaid Fraud Control Units Team conducted the investigations and settlement negotiations with Walgreens on behalf of the states involved.

The Medicaid Fraud Control Unit is part of the New Hampshire Department of Justice and is responsible for investigating and prosecuting Medicaid fraud and harm to residents of board and care facilities.  To report suspected Medicaid fraud, abuse, or neglect, please contact the Medicaid Fraud Control Unit at (603) 271-1246.