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Walgreen settles Medicaid dispute

June 05, 2008|From Times Wire Services

Walgreen Co. has agreed to pay $35 million to settle a whistle-blower suit alleging that it boosted the price for prescriptions paid by Medicaid by switching from capsules to tablets, or vice versa, depending on which was more expensive.

Federal officials said the practice of switching dramatically increased the amount of taxpayer money that Walgreen, which operates drugstores in 48 states and Puerto Rico, charged to the Medicaid program.

The federal government, 42 states and Puerto Rico will share the $35 million, officials said.

Walgreen, based in Deerfield, Ill., denied any wrongdoing in connection with the settlement.

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