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Walgreens Settles in Suit for Overcharging Workers Compensation Prescriptions

Perscription PillsFollowing a recent settlement with Massachusetts Attorney General Martha Coakley, the Walgreens pharmacy chain will be paying $2.8 million to the state and 75 cities and towns across Massachusetts.


The settlement with Attorney General Coakley’s Office is the result of an investigation uncovering Walgreens’ alleged practice of overcharging Massachusetts taxpayers for prescription drugs under the workers compensation system. As Attorney General Coakley noted in a press release, “Cities and towns are under a great deal of economic stress, and every dollar counts … Here, the cities and towns were overcharged for prescription drug purchases.  Today’s action recovers nearly three million back for local communities, and works to prevent these kinds of overcharges from happening in the future.”


Walgreens allegedly billed city and state agencies to fill prescription medications for workers compensation claimants at rates exceeding those authorized by Massachusetts law. Out of the $2.8 million payment Walgreens will make to public entities in the Commonwealth, Boston will collect $200,000, and cities like Springfield, Auburn, New Bedford, Fairhaven, Lowell, Norwood, Revere, South Hadley, and Winchester will each receive restitution payments in excess of $10,000.


The recent settlement is just one within a broader, ongoing investigation conducted by the Attorney General’s Insurance and Financial Services Division; this investigation continues to focus on pharmacies that overcharge public entities for prescriptions under the workers compensation insurance system.  The Attorney General has reached similar Settlements in recent years have also involved Shaws Supermarkets, CVS, and others.


Controversies surrounding prescription drugs and medical treatment under the workers compensation system are, of course, not limited to pharmacies; many injured workers are denied claims that would give them access to needed medical services and prescriptions in the first place.  If your injury claim has been denied, or if you want to re-open a closed claim, contact a Washington Workers Compensation Attorney today for a free consultation.

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Emery Reddy