Kmart to Pay Over $400K to Kentucky to Resolve Medicaid Overbilling Allegations

On Thursday, January 4, 2018, Attorney General Andy Beshear announced that the Kmart Corporation will pay more than $415,000 to Kentucky to resolve state and federal Medicaid program overbilling allegations. Beshear joined with other states and the federal government to settle allegations regarding the company’s Retail Maintenance Program, which offered discounts on generic drugs to its cash paying customers. Kmart and many other pharmacies began offering discounted rates to cash paying customers in the mid-2000s. Although some pharmacies with similar programs gave federal health care programs the benefits of these prices, a lawsuit filed in the US District Court for the Southern District of Illinois alleged Kmart, owned by Sears Holdings Management Corporation, was submitting false claims when it charged federal health care programs higher prices than it was charging cash paying customers. The settlement resolves the company from these allegations for the time period of September 1, 2004 through December 31, 2014.

Be the first to comment

Leave a comment

Your email address will not be published.