Wal-Mart, Sam's Club to Pay $825K to Settle Medicaid Prescription Auto-Refill Allegations

Wal-Mart, Sam's Club to Pay $825K to Settle Medicaid Prescription Auto-Refill Allegations Photo: AP/Alan Diaz

May 29, 2018 09:21 PM

Sam's Club and Wal-Mart will pay $825,000 to settle allegations the companies automatically refilled prescriptions and billed Minnesota's Medicaid program, violating state rules and regulations, according to a release from U.S. Attorney Greg Booker's office.

Minnesota does not allow pharmacies to automatically refill prescriptions without an explicit request from the beneficiary, the attorney's office said.

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According to the release, the complaint alleges Wal-Mart Stores, Inc. and Sam's West, Inc. routinely enrolled Medical Assistance beneficiaries in their auto-refill programs, then billed Medical Assistance for those prescriptions, violating the False Claims Act and Minnesota False Claims Act.

The allegations also state, according to the release, that pharmacy employees reported the violations to company managers, but the companies did not take any action.

Booker said the rules are in place "to avoid unused prescription medications and wasted taxpayer funds."

The companies will pay half the settlement, $412,500, to the federal government and half to the state of Minnesota.

Wal-Mart and Sam's Club, as part of the settlements, have denied the allegations.

Credits

Anthony Brousseau

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