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How a Software Error Led to a $106 Million Settlement
Walgreens has agreed to pay $106 million to settle lawsuits that alleged the Deerfield-based pharmacy chain submitted false payment claims with government health care programs for prescriptions that were never dispensed. The settlement announced on Friday resolves lawsuits filed in New Mexico, Texas, and Florida on behalf of three people who had worked in Walgreens’ pharmacy operation.
What Happened?
The pharmacy chain was accused of submitting false payment claims to Medicare, Medicaid, and other federal health care programs between 2009 and 2020 for prescriptions that were processed but never picked up. Settlement documents say Walgreens cooperated in the investigation and has improved its electronic management system to prevent such problems from occurring again.
What Did Walgreens Say?
In a statement, Walgreens said that because of a software error, the chain inadvertently billed some government programs for a relatively small number of prescriptions that patients submitted but never picked up. "We corrected the error, reported the issue to the government, and voluntarily refunded all overpayments," the statement by Walgreens said.
What’s Next?
In reaching the settlement, the chain didn’t acknowledge legal liability in the cases. However, the company has agreed to pay $106 million to settle the lawsuits.
Conclusion
The case highlights the importance of companies taking steps to prevent errors and inaccuracies in their business practices. It also underscores the need for robust internal controls and auditing procedures to ensure compliance with government regulations.
Frequently Asked Questions
Q: What was the reason for the settlement?
A: The settlement was reached due to allegations that Walgreens submitted false payment claims to government health care programs for prescriptions that were never dispensed.
Q: How much is Walgreens paying in the settlement?
A: Walgreens is paying $106 million to settle the lawsuits.
Q: Did Walgreens acknowledge legal liability in the cases?
A: No, Walgreens did not acknowledge legal liability in the cases.
Q: Has Walgreens taken steps to prevent similar errors in the future?
A: Yes, Walgreens has improved its electronic management system to prevent such problems from occurring again.
Q: When did the allegations occur?
A: The allegations occurred between 2009 and 2020.
