Walgreens to Pay $16 Million in Medicare Overbilling Settlement

Walgreen Co. and others have agreed to pay $16 million to settle a whistleblower’s False Claims Act suit alleging overbilling of Medicare and Medicaid for prescription drugs.

A dismissal order of whistleblower J. Douglas Strauser’s suit was signed Monday by Judge Gregory K. Frizzell of the US District Court for the Northern District of Oklahoma.

Strauser alleged that USA Drug, a regional pharmacy acquired by Walgreens, overbilled Medicare Part D, Medicaid, and other government health programs millions of dollars by unlawfully charging more for generic drugs than the customary prices paid by individuals without prescription drug insurance.

Strauser will receive ...