Walgreens settles Medicaid violation accusations

MILWAUKEE (AP) — The U.S. Attorney in the Eastern District of Wisconsin says Walgreens has agreed to pay $3.5 million to settle allegations that it had failed to comply with Medicaid rules designed to ensure that stimulant medications are dispensed for appropriate medical treatment.

The Wisconsin Medicaid program reimburses a pharmacy for dispensing certain stimulant medications only if it first verifies that a physician prescribed the stimulant for medically appropriate treatment, such as attention-deficient disorder.

Federal and state authorities allege that from 2011 through 2014, Walgreens violated Wisconsin Medicaid rules by routinely dispensing stimulant medications to Wisconsin Medicaid beneficiaries without that verification in violation of the False Claims Act.

Walgreens operates retail pharmacies throughout Wisconsin.