Attorney General Settles False Medicare Claims With Walgreen Pharmacies

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(UNDATED) - Attorney General Steve Carter says he’s resolved a 2004 lawsuit with Walgreen’s alleging false Medicare billing practices.

The problem involves Medicare's restricted card program. It allows only one doctor to prescribe medications to patients whose drug usage indicates a possibility of abuse. A pharmacy is not reimbursed by Medicare if another doctor writes the prescription.

The attorney general says at a Walgreen's pharmacy in Muncie, the names of doctors were altered 490 times during a four year period. Further investigation found close to 5,000 false claims at another 124 Walgreen pharmacies across the state.

Walgreen's has agreed to pay Medicare $400,000 to settle the case. The company will also institute a training program for employees about Medicare's restricted card program.

The state will monitor results of the training over the next three years.

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