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Walmart and Target to Pay $232,000 for Alleged Medical Overcharges

Walmart and Target have agreed to pay a combined $232,000 to cities and towns across Massachusetts after allegedly overcharging public agencies through the workers’ compensation insurance system. Attorney General Martha Coakley has been investigating pharmacy chains and lower-volume alternative retailers of pharmaceuticals and has thus far recovered more than $8 million.

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Attorney General Martha Coakley said, “Cities and towns are under a great deal of economic pressure to provide much needed services to their residents. We are proud of our work to get money back for cities and towns and to prevent such overcharges from happening in the future.”

Under the conditions of the settlement, Walmart will pay $207,000 and Target will pay $25,000. The payments include double damages for violations of the state’s False Claims Act and restitution for the alleged overcharges. The companies are also required to implement procedures that will prevent any future overcharges from occurring.

The cities and towns that were affected by the alleged overcharges include Amherst, Boston, Concord, Everett, Fall River, Framingham, Hingham, Lowell, Plymouth, Springfield and Worcester.

The Attorney General has also filed claims against major pharmacy chains CVS, Rite-Aid, and Walgreens in which she also alleged that they overcharged towns and cities for drugs under the workers’ compensation system. The settlement reached last week is part of an ongoing investigation into other entities that have Massachusetts pharmacy licenses, such as grocery stores and general retailers. The Attorney General has also recovered from Stop & Shop and Shaw’s Supermarkets in regards to their workers’ compensation municipal prescription business.

Coakley has stated that, “The investigation of prescription overcharges to municipalities under the workers’ compensation system is ongoing.”

Pulgini & Norton, LLP attorneys have handled workers’ compensation claims for over 25 years in and around Boston and its surrounding areas. If you or a family member has been injured at work and would like to seek legal assistance, please contact us at (781) 843-2200 or (888) 344-2046 or email us.

Cited Sources:

Walmart and Target to Pay $232,000 for Allegedly Overcharging Municipalities for Prescription Drug Coverage, Workerscompensation.com, July 7, 2012

Coakley: Walmart, Target to pay $232,000 for alleged overcharges, Legalnewsline.com, July 5, 2012

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