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A total of 42 states and Commonwealth of Puerto Rico participated in the $35 million settlement. The agreement results from a federal-state investigation sparked by a false claims act lawsuit filed in 2003 in U.S. District Court in Chicago. Blumenthal said, “This settlement returns more than $126,000 to taxpayers, money that Walgreens stole by duplicitously and deviously switching to more expensive dosage forms. These switches served no purpose but to illegally extract extra dollars from the state. This scheme was shameful and shameless, swapping pills and capsules to overcharge taxpayers. I will continue to vigorously and aggressively pursue companies and individuals who defraud the state’s health programs.” Kane commended the Medicaid Fraud Control Unit in the Office of the Chief State's Attorney, the Attorney General's Office and the Department of Social Services for their continuing cooperation to combat fraud and abuse in the Medicaid program to prevent the loss or waste of limited public resources. Starkowski said, “The settlement again illustrates the need for the federal and state governments to be constantly vigilant in fraud detection and interdiction activities, especially since Medicaid is by far the largest single program account in the state budget.” Walgreens allegedly switched dosage forms of Ranitidine (the generic form of Zantac, a commonly prescribed anti-ulcer medication); Fluoxetine (the generic form of Prozac, an anti-depressant); and Selegiline (the generic form of Eldepryl, used in the treatment of Parkinson’s disease and senile dementia). Specifically, the pharmacy changed Ranitidine (generic Zantac) from 150 mg or 300 mg tablets to capsules; Fluoxetine (generic Prozac) from 10 mg or 20 mg capsules to tablets and Selegiline (generic Eldepryl) from 5 mg tablets to capsules. The switches allegedly occurred from July 2001 through 2005. The changes, unauthorized by any physician and of no benefit to patients, violated federal and state statutes and regulations, but allowed Walgreens to increase charges to state Medicaid programs. In addition to cash settlements to state and federal governments, Walgreens signed a Corporate Integrity Agreement with the Office of the Inspector General of the United States Department of Health and Human Services. Under the agreement, Walgreens agreed to not switch dosage forms if the result increases costs to third party payers, including Medicaid, and consented to federal monitoring of its billing practices. Under the settlement, the federal government also will receive $118,801 for its share of Connecticut’s Medicaid costs. The state and federal governments split the cost of Medicaid, which provides medical care to the indigent. © Copyright by StamfordPlus.com. Some articles and pictures posted on our website, as indicated by their bylines, were submitted as press releases and do not necessarily reflect the position and opinion of StamfordPlus.com, Stamford Plus magazine, Canaiden LLC or any of its associated entities. Articles may have been edited for brevity and grammar. Related Articles: Governor Rell writes congressional leadership urging action on second federal stimulus package - Sep 18, 2008 - 1:59 PM Governor Rell: Added LIHEAP funds ‘more than welcome’ – but still more required - Sep 17, 2008 - 1:26 PM Shays supports comprehensive energy policy - Sep 15, 2008 - 5:16 PM Former Highville Mustard Seed Charter School head and others sued for alleged misappropriation of more than $210,000 - Sep 15, 2008 - 5:12 PM Commentary: When the oil bubble is fueled by speculators - Sep 15, 2008 - 10:53 AM CURRENT HEADLINES: Top of Page
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