MO receives $42K in Walgreens settlement

Missouri is receiving $42,000 as a part of a national settlement with Walgreen Co. alleging the Deerfield, Ill.-based company used illegal practices to encourage consumers to switch their prescriptions to Walgreens stores.

The settlement refunds the state's Medicaid program and resolves allegations that between Jan. 1, 2005, and June 11, 2010, the company unlawfully offered gift cards and gift checks to Medicaid and Medicare consumers to lure them into using Walgreens pharmacies, according to a news release from Missouri Attorney General Chris Koster's office.

According to the release, Missouri and federal law prohibits the use of payment incentives to persuade government-sponsored health care program participants to purchase goods or services.

“All parties involved with the Medicaid program must follow the rules,” Koster said in the release. “I am pleased we were able to recover these funds and return scarce health care dollars to the state of Missouri.”

The full settlement calls for Walgreens to pay $7.9 million in civil damages to participating states and the federal government for Medicaid, Medicare, Tricare and the Federal Employees Health Benefits Program.

Publicly traded Walgreens (NYSE: WAG) posted net earnings of $683 million for its second quarter ended Feb. 29, a 7.7 percent decrease compared to $739 million in profits for the same quarter of the prior year.

As of 8:56 a.m., the company's shares were trading at $31.36, compared to its 52-week range of $30.34 to $45.34.