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Walgreens pays $9.9 million settlement

WASHINGTON, Sept. 29 (UPI) -- National pharmacy giant Walgreens Co. paid $9.9 million to settle claims it had overbilled four state Medicaid agencies, the U.S. Department of Justice said.

The company charged the Medicaid offices for reimbursement based on the difference between what private insurance paid for the drugs and what Medicaid "would have paid in the absence of private insurance," the DOJ said in a statement.

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Instead, the company should have charged Medicaid for the amount insured clients paid out of pocket, typically the co-pay, the Department said.

"Healthcare fraud continues to be a priority for both the District of Minnesota and the Department of Justice nationwide," said U.S. Attorney Frank Magill.

"Our office is gratified to see a substantial recovery of funds for the taxpayers, helping to ensure the continued availability of Medicare and Medicaid trust funds in the future," he said.

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