Walgreen Settles Medicaid Case for $9.9M
New York City The U.S. Department of Justice said Monday that Walgreen Co. paid $9.9 million to settle allegations that it overcharged the Medicaid programs in Minnesota, Michigan, Florida and Massachusetts, according to the Associated Press.
Walgreen charged the four states as if some Medicaid members were uninsured, the Justice Department said, when those members were actually covered by Medicaid and by private insurance. The department said Walgreen was entitled to a copay, but instead, charged the difference between what the insurance companies paid for the drugs and what the Medicaid programs would have paid if the members were uninsured, according to the report.
The Department of Justice did not say in its statement whether Walgreen acknowledged any wrongdoing in the settlement. The extent of the alleged overcharging was also unknown, but appear to have reached $3.3 million at most.
“In a False Claims Act case, the government can collect up to three times the amount of the fraud,” said department spokesman Charles Miller.
The payments were made to the four states and to the U.S. Walgreen pharmacists Daniel Bieurance and Neil Thompson, who reported the overcharging, will divide approximately $1.4 million of the award.
Archileti named DeCA acting chief of staff
FORT LEE, Va. Vicki Archileti was appointed acting chief of staff for the Defense Commissary Agency, effective Sept. 8. She will temporarily leave her position as director of corporate planning for six months. In the interim, Sheila Walton will be acting director corporate planning through Dec. 12, and Mark Simpson will assume the duties from Dec. 13 to March 13, 2009.
“I am excited to serve in this newly created position and look forward to tackling these new responsibilities,” Archileti said. “I believe this position is critical because it involves managing day–to–day headquarters activities which will further allow our executive leaders to focus on significant operational initiatives.”
Archileti was selected director of corporate planning in January 2004. In that position, she has been responsible for anticipating and planning for DeCA’s external challenges.
Schoonover to get $1.8M in severance deal
RICHMOND, Va. Philip Schoonover, the former head of Circuit City, will receive a severance package worth $1.8 million, according to an SEC filing.
Schoonover will receive his annual base salary and a target bonus for the current fiscal year, each worth $900,000.
Schoonover also will receive health and welfare benefit plan participation for two years, up to $50,000 in outplacement services and the acceleration of the vesting of his stock options and restricted stock awards that would have vested before Oct. 4.