Walgreen Medicaid Fraud Suit Advanced by Feds in Tennessee

Federal and Tennessee prosecutors adequately alleged that Walgreen Co. violated the False Claims Act by falsifying patient records in order to improperly receive millions of dollars worth of Hepatitis C medication payments from Medicaid, a Tennessee district court said.

The plaintiffs say Walgreens, acting through store manager and pharmacist Amber Reilly, knowingly submitted or caused to be submitted materially false information to TennCare for dozens of enrollees who lacked eligibility for Medicaid reimbursement.

Walgreens argued that it can’t be vicariously liable under the FCA because plaintiffs didn’t show the company knew about allegedly fraudulent actions while they were taking place.

But a corporation can be vicariously liable under the FCA when it benefits from the fraud of a managerial agent who is acting within the scope of her employment, Judge J. Ronnie Greer of the U.S. District Court for the Eastern District of Tennessee said in the Monday opinion.

Source: Walgreen Medicaid Fraud Suit Advanced by Feds in Tennessee / Bloomberg Law

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