Kmart pays $35.3M to settle hard-fought whistleblower case alleging inflated prescription drug prices. Exposing Misconduct.

Kmart pays $35.3M to settle hard-fought whistleblower case alleging inflated prescription drug prices

December 22, 2017

WASHINGTONDec. 22, 2017 /PRNewswire/ — Kmart Corp. has agreed to pay $35.3 million to the federal government and a number of states to settle a whistleblower lawsuit jointly litigated by Phillips & Cohen LLP and Korein Tillery that alleged Kmart overcharged government healthcare programs and private insurers for generic prescription drugs.

 The “qui tam” (whistleblower) case – filed in 2008 by Phillips & Cohen on behalf of former Kmart pharmacist James Garbe – alleged that from 2004 to 2016 Kmart charged Medicare, Medicaid and Tricare as well as private insurers more for generic prescription drugs than it charged customers who paid cash. Pharmacies are required to bill government insurance programs the lowest price offered to cash-paying customers.

The $35.3 million settlement includes $3 million paid to California and Illinois to settle Garbe’s allegations that Kmart also improperly billed private insurers higher prices for generic prescription drugs  in violation of the California Insurance Fraud Prevention Act and the Illinois Insurance Claims Fraud Prevention Act.

Read more here.
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