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Medicaid Fraud

Indianapolis, IN: (May-01-08) Indiana Attorney General Steve Carter's office brought a lawsuit against Walgreen Co., claiming that the IL, based pharmacy chain dealt fraudulently with the state's Medicaid program. The suit was filed by the federal office in 2004, accusing the company's pharmacy in Muncie of submitting nearly 500 false claims for 25 patients whose Medicaid prescription benefits were restricted because of suspected drug abuse. Following that, the AG's office began an investigation through its Medicaid Fraud Control Unit, which revealed that there were an additional 4,946 false claims at 124 Walgreens stores across IN.

The dispute centered on patients who were on the state's Medicaid Restricted Card Program, typically those who had to have prescriptions written by a single designated physician because of a history of narcotics abuse. Carter's offices stated that Walgreens altered prescription claims to work around the restrictions. Sources familiar with the case stated that the two sides agreed to a settlement agreement, resolving the lawsuit. Under the terms of the deal, while not admitting any liability, Walgreens agreed to pay IN $337,050 in penalties and $44,800 in investigative costs. [NWI TIMES: INDIANA SETTLES WITH WALGREENS OVER ALLEGED MEDICAID FRAUD]

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Published on May-5-08


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