September 30, 2008
 

LANSING - Attorney General Mike Cox today announced that Michigan will receive more than $1.8 million as part of a settlement with Walgreen Company, one of America's largest pharmacies.  The settlement is a result of a federal investigation which stemmed from two former employees who alleged that Walgreens pharmacy over billed state Medicaid programs.
 

"Medicaid fraud costs the state millions of dollars, money that Michigan's most vulnerable citizens rely on to provide vital healthcare services," said Cox.  "Today's settlement is a win for Michigan citizens and taxpayers."
 

Between 1999 and 2005, Walgreens submitted false Medicaid claims to Michigan and three other states' Medicaid programs.  Walgreens billed the Medicaid programs for prescription drugs dispensed to individuals covered by both Medicaid and private insurance.  Despite the third-party private insurance coverage, Walgreens submitted claims to obtain reimbursements for more than it was entitled to receive. The total settlement of $9.9 million was shared between the federal government, Minnesota, Florida, Massachusetts and Michigan. 
 

Attorney General Cox has aggressively tackled the problem of Medicaid abuse, and in 2005, successfully drafted and lobbied for the passage of the Medicaid Whistle Blower Protection Act (PA 337 of 2005).  Annually, Cox's office averages $19 million in Medicaid recoveries and has recovered more than $108 million since 2003.
 

To report Medicaid provider fraud, identity theft or patient abuse in a resident care facility, call the Attorney General's 24-hour Hotline at 800-24-ABUSE (800-242-2873); email hcf@michigan.gov; or visit the Attorney General's website at http://www.michigan.gov/ag.
 

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