
CHICAGO, June 13, 2008
Walgreens Accused Of Scamming Taxpayers
A Look Inside What's Been Called America's Biggest Pharmacy's Pill-Flipping Scheme
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Walgreens Accused Of Rx Scam
Claims have surfaced that reveal nationwide drugstore chain Walgreens allegedly engaged in a scam involving Medicaid, which cheated taxpayers out of millions. Sharyl Attkisson investigates.
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A whistleblower said Walgreens rigged its computers to automatically switch to the most expensive type of pill. In the case of Zantac, that meant switching generic tablets to pricey capsules. (CBS)
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“Beyond the reach of cell phones and superhighways, there’s a place called ‘perfect,’” rings the familiar ad for Walgreens.
In a perfect world, however, Walgreens wouldn't be accused of ripping off taxpayers. But we're nowhere near perfect. CBS News investigative correspondent Sharyl Attkisson reports.
Michael Behn, a former federal prosecutor, said, “The pharmacies nationwide had a pill flipping scheme.”
Behn helped expose how Walgreens exploited a Medicaid loophole.
To save taxpayer dollars, Medicaid limits how much it pays for popular forms of drugs.
But it doesn't bother to set price-ceilings on rarely-used versions.
Take generic Zantac, or ranitidine, for example. The antacid is a huge seller in tablet form. Medicaid limits payment to 34 cents apiece.
The same drug as capsules has no price-ceiling because it was so rarely-prescribed. Medicaid pays $1.25 each.
Walgreens figured it could pocket millions by switching patients from tablets to capsules.
Behn explained to Attkisson, “These are the ranitidine capsules.”
“This is what was being prescribed?” Attkisson asked, pointing to the tablets. “And this is what was being given?” pointing to the capsules.
Behn replied, “Correct. At three times or more the cost to taxpayers,” Behn answered.
The scheme was blown wide open by a whistleblower, a pharmacist who doesn’t want to appear on camera. He said Walgreens rigged its computers to automatically switch to the most expensive type of pill.
“The only way in which a computer system could switch from a tablet and a capsule, is if someone went in and manipulated the computer system,” Behn said.
Attkisson asked, “And the fact that this was done nationwide indicates this was a corporate policy?”
Behn responded, “That’s what we alleged.”
By gaming the system, Walgreens managed to change over almost all Medicaid customers from cheap generic Zantac tablets to pricy capsules.
In Florida alone, it cost taxpayers an extra $1.2 million the first year.
And the pill-switching went on for several years nationwide, including other prescriptions: generic Prozac (fluoxetine) for depression, and generic Eldepryl (selegiline) for Parkinson's.
Walgreens denies wrongdoing and declined to be interviewed.
But they recently agreed to pay back the government more than $35 million.
And they're not the only ones. CVS and Omnicare quietly settled similar cases coughing up $86 million more.
The whole pill-flipping episode proves just how imperfect some drugstore chains can be.
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See all 167 CommentsOne less reason to shop at Walgreens.
Posted by krisinal
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Want another reason?
Dispensing charge. We found out about this one when we had to get a prescription partially filled (5 days worth .. better half dropped open bottle some went into drain) .. the cost of the drug for 5 days was $4 .. the dispensing fee was $15!!!!!!!!
We switched that day to a pharmacy that only charges $5 .. and no fee for partials.
We figure we are saving the gov''t $210 on just dispensing fees a month. Sad thing is if we had never needed a partial and had to pay cash we would have never known.
Posted by krisinal at 08:16 PM : Jun 13, 2008
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Yeah and they are owned by that cult that has the little trumpet on the spire at their compounds...
Drugstore chains are inanimate objects. The people who set policy are criminal, not "imperfect".
ARE SCAMMERS ! OUTLAW RePubliCONS ! IMPEACH W
IMPEACH Dicck,...Declare ALL RE-CONS INSANE !
Split up All RE-CON Monies into a fund,..Then spend this fund on National Health Care For Democrats ( Re-Cons Won`t need it,They`ll ALL be Asylums !
" SCUMBAG ASYLUM SLUMS " The New neighborhood for ALL Corrupt Re-CONS ! And For Those who Enable them and Uphold them ( Abetting Criminals IS a Criminal Offense ! )
This November WILL See " THE BIGGEST FALL " EVER !
EVERY RE-CON on the Ballot WILL LOSE !
AMERICA IS Returning to The People !
Enron,Walgreens,Halliburton,Aetna,Boeing,The Carlyle Group,KBR,..and ALL OTHER CRIMINAL Organizations Will GO DOWN !
END THE INSANITY ! IMPEACH W ,..before He Flees to Dubai OR Paraguay !
Insurance companies pay? Insurance companies are rackets, major money mills that are private profit driven organizations.
My spouse''s company made ''an error'' they admit in how they entered the group insurance plan, denying the 90-day by mail prescription benefit. It admits the mistake, but won''t provide the benefit as stated for at least the LAST 2 YEARS IN THE LITERATURE THEY PUT OUT.
Be expecting a sizeable lawsuit against a major company soon. It was great it admitted the ''error'' but the fact that it failed to offer any kind of apology or reimbursement of patient costs based on their own admitted error, is going to cost them dearly. Just watch.
You sound like an industry shill. I''m a victim of your industry. There''s a target on your back. Enough''s enough... your day is done. Long live America!
Posted by KMCCLIMENT
In the early 1960''s there was a television show about mafia activity in the 1930''s. The program was called "The Untouchables" That''s what organized crime on behalf of global corporate america feels like in the United States today. It seems we''re dealing with the untouchables. No one is left to take on organized crime at the highest levels. The very top owns the politicians and the supreme court. He who owns the gold rules. That wasn''t to be the american dream. Old world order has taken hold. The United States as a great social experiment appears deceased after a bit over 200 years. The stability of ruling oligarchies are returning bringing about the old world order warmed over and called "new".
UnFlippen Real :-{
Absolutely true, however all is not lost, remember what happened in France when the excesses of the aristocracy became too much for the people to bear? That''s right, the French Revolution.
I do, however think that the cycle between excess and collapse is growing shorter, especially now that information can be shared so much more rapidly.
There will be no prison.
Posted by Element51 at 03:10 AM : Jun 14, 2008
"Trust me, it would not work." You seem to have first hand information. Where did you get your information?
Posted by ofbyfor1 at 09:04 PM : Jun 13, 2008
Cus thanks to 500+ Cable TV channels, I Pods, X Boxes, meaningless sports, consumerism, Religion, MSM gatekeepers etc(none of these existed 200 years ago except religion -- this alone proved insufficient to ward off rebellion, so the elite foisted upon us all these "opiates" instead to subdue us with great effect)... most people are still totally oblivious to whats going on, and when they do wake up (can''t be long now) -- the elite will be prepared for it this time. Marshall Law Fema camps anyone?
Guess I''ll switch to Walmart.
Posted by bgwinnett
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Okay, so you''re not oblivious to your self-proclaimed conspiracy. Apart from bleating on about it in ways that won''t convince anybody, why aren''t YOU doing anything? Perhaps you don''t believe in what you say? It''s like Al Gore; babbling about global warming and then finding out how much he uses to heat his homes, flying everywhere, being on Apple''s board for years and yet Apple STILL has one of the worst records on "green" actions...
Sorry sir, but YOU need to wake up.
Posted by FloydZeppl
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Not all corporations are sleazy and not all are Republican.
I do so hate glib generalizations, but I''ll agree some corporations do sick things - thank you CBS for pointing out Walgreens'' bait-and-switch... that''s sleazier than Spitzer or Craig, albeit not by much...
Posted by bgwinnett
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So "I Love Lucy" was someone''s attempt to quell the populace?!
When Nolan Bushnell invented Pong and, later,
Do you really know what WAS happening 200 years ago? Do you have a functioning time machine?
When Nolan Bushnell invented Pong and, later, Atari - a company that spawned a whole new industry, and all in the early 1970s*... that was really a clandestine attempt to keep people passive. You really believe that?!!
* The early 1970s: A time when drug-stoned hippies thought that drugs, VD, and loud music was all that was needed for world peace...
W WILL GO DoWn in History as
ABSOLUTELY ,Far and BeloW as The W orst Resident
to EVER Occupy the W hite House
W mismanaged to lose our country`s respect W orld W ide
He LIED to Start a Disastrous W ar
He Shredded our constitution
Corporate GREED IS his Biggest policy
Corporate Thugs are his advisers
His Only accomplishments were Stealing elections
SHRUB`s " Shrubbies " Will Jump ship,..Telling ALL,.e.g.Scott McClearhead
For those who stood by ( gutless )They Will Be Slaughtered in the Upcoming election
W is a Perfect Example of What can (and Did ) happen when a government IS Hijacked !
NO MORE RE-CONS !!!!!
DO NOT let These CRIMINALS ( The GOP sect ) back in your homes !
NEVER,EVER,under Any Circumstances let Your guard doWn," Remember,Friends Never Let Friends Vote republiCon "
This idea that unchecked capitalism is the only way that this country can work is bolongna. Take a look around you! We need to start getting some rules that don''t just apply to us little people, but to everyone.
Posted by jamesm12341 at 09:43 AM : Jun 14, 2008
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Because we the people empower the government to do so through the Constitution. One of the requirements placed upon the federal government is "to provide for the general welfare", and that would seem to include stopping corporations from ripping off taxpayer dollars.
Typical Republican whining about the government actually doing something worthwhile, rather than robbing the poor and giving to the rich.
Posted by jamesm12341 at 09:43 AM : Jun 14, 2008
You idiot! The government in this country works for US--they are (sometimes mistakenly) voted in and PAID to run this country with the best interest of the citizens.
They decide our taxes, laws and are expected to uphold the Constitution our forefathers laid out.
The government does provide a lot for this country and other not so fortunate countries.
Not everyone is as fortunate as you not to need the government for anything, however you have USED to government throughout your life ie:education for one thing and only you know if you are currently using any government program, which if you are, is why you are so adamant at other people not using it--you want it all for yourself!
Your posts are that of a person who has been over phscho-analyzed to the point where you are consumed by it.
You lack of empathy for people less fortunate than you leaves you to be a shallow sub human being.
Crawl back under the rock you came from.
Posted by jamesm12341 at 09:43 AM : Jun 14, 2008
This is the spin of deceit the right wing neo cons have been issuing. There will always be government, always has been and always will be. An illusive elite resent the people''s participation. Reagan complained of big government on the backs of the people. He used the prejudice people feel toward welfare recipients etc. to create this anti-government sentiment. Of course, he did this with a whole lot of illusive wealthy supporters who then were able to drum up the support of the ignorant masses who with out foresight sold off their children and grandchildren''s posterity.
The United States is gradually and systematically falling prey to a privatized government which will operate wall street style. In other words, elections will be held wall street style in which the largest shareholders will determine outcomes. The neo cons hate big public government with allows for maximum participation of the people. Neo cons seek to enjoy huge private government ready to take from the greater society in order to serve a small number of the largest shareholders.
Posted by l8c6
There are so many examples of this throughout the history of humanity the world over. One example was king Ludwig of Germany in the late 1800s. He bankrupted the Bavarian treasury building a series of private castles where at tax payer expense he hosted private orgies and honored himself. It''s quite incredible to visit the castles that were built and imagine that these huge buildings requiring the best stone cutters, metal workers and wood finishers were for one man''s privatized government. Of course revolution does eventually come and throughout history it''s often bloody as the elite fortress themselves with armor and militia via funding through the taxes of the people that seek revolt.
The very wealthiest will of course argue they pay all the taxes and are burdened by the masses. This attitude is quite plainly anti-social at its base.
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Posted by itgrammy at 09:06 AM : Jun 14, 2008
Strange isn''t it? Our DNC took over Congress two years ago, and haven''t passed on piece of legislation to try to put the lid on pharmaceuticals!
Drugstore chains are inanimate objects. The people who set policy are criminal, not "imperfect".
The other strange thing is that for a lot of chronic diseases you can find solutions in alternative medicines, and control your diet so you don''t have to depend on pharmaceuticals. But most people are too lazy to change their lifestyles and would rather rely on a damned pill that eventually attacks your liver and creates worse symptoms! I have a friend who is a type II diabetic completely controlling it with diet alone!
And of course there''s the other half that''s hooked on some kind of feel good pills that basically make them zombies!
Autoimmune diseases can also be controlled with diet! If you don''t eat hamburgers and KRAP for every meal, you don''t have to hurt so damned much and can live with a minimum of pharmaceutical help instead of gagging down a pill every day!
America needs to get real, and stop walking out of the doctor''s office with a handful of prescriptions!
~~~~~~~~~~~~~~
Type II diabetes in most cases can be controlled with diet and exercise (you have to be very diligent); however there are exceptions.
Type I cannot be controlled with just diet and exercise, although both are an important component of the normal treatment plan. For this one, you need insulin.
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Posted by itgrammy at 10:56 AM : Jun 14, 2008
Strange isn''t it, that my 25 employees who have children, have NEVER been denied health care! Even if they don''t have insurance! Not in all the years republicans have been in control. During the Clinton or the Bush years either one!
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