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Monday, April 23, 2012

Walgreens Agreed To Settle Allegations

WalgreensWalgreens (Photo credit: Wikipedia)Billions of dollars are made every year from the sales of prescription drugs. Pharmacies across the globe have a vested interest in convincing customers to fill their prescription at their store. Many of the prescriptions filled every day are paid for by the government, but it is illegal for pharmacies to give incentives to those on state health programs to fill their prescriptions.

Walgreens has agreed to pay the government $7.9 million to settle allegations that the company gave people enrolled in government-run health programs $25 gift cards for switching their prescriptions over to the pharmacy chain, according to the Justice Department.

The gift cards were only to be offered to those paying for their medications privately or with self pay insurance, but Walgreens would ignore the exemptions.

“This case represents the government’s strong commitment to pursuing improper practices in the retail pharmacy industry that have the effect of manipulating patient decisions,” Stuart F. Delery, Acting Assistant Attorney General with the U.S. Justice Department, said in a news release.
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