Walgreens accused of scamming taxpayers

[DixieBelle]

It's America's biggest drugstore chain.

“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.

http://www.cbsnews.com/stories/2008/06/13/eveningnews/main4180870.shtml

Now imagine an Obama healthcare plan and see how widespread this becomes. 

Of course eviiiiiiiiil capitalism and corporations will probably take the blame in DUmmieland.

[Lord Undies]

Behn helped expose how Walgreens exploited a Medicaid loophole.

In other words, they did nothing wrong but they are still guilty.  Why are "loophole" good only when democrats use them to their advantage? 

To save taxpayer dollars, Medicaid limits how much it pays for popular forms of drugs.

To save taxpayer dollars or shaft the pharmacies?

But it doesn't bother to set price-ceilings on rarely-used versions.

I can see how that would be too much trouble.   

[Wretched Excess]

this wouldn't be a problem if government wasn't trying to set the market price for prescription drugs in
the first place.  then there wouldn't be a need to "protect taxpayers" from anything.

that ship has long since sailed, of course.

[DixieBelle]

^exactly. This is child's play compared to Democrat health care.

[RobJohnson]

this wouldn't be a problem if government wasn't trying to set the market price for prescription drugs in
the first place.  then there wouldn't be a need to "protect taxpayers" from anything.

that ship has long since sailed, of course.

I agree....

Easy fix...take away socail programs!

[rich_t]

this wouldn't be a problem if government wasn't trying to set the market price for prescription drugs in
the first place.  then there wouldn't be a need to "protect taxpayers" from anything.

that ship has long since sailed, of course.

I agree 100%.

A truely free market place is self-correcting.  It only gets FUBARed when the government attempts to "control" it.

[rich_t]

this wouldn't be a problem if government wasn't trying to set the market price for prescription drugs in
the first place.  then there wouldn't be a need to "protect taxpayers" from anything.

I'm going to have to disagree WE, when it comes to prescription drugs... I'm not sure that an actual competitive market can exist in America, with our current system.

I don't know how you can say that when such competition actually exits now. 

[RobJohnson]

this wouldn't be a problem if government wasn't trying to set the market price for prescription drugs in
the first place.  then there wouldn't be a need to "protect taxpayers" from anything.

I'm going to have to disagree WE, when it comes to prescription drugs... I'm not sure that an actual competitive market can exist in America, with our current system.

I don't know how you can say that when such competition actually exits now. 

You bet it does, Generic price wars everywhere! Now there are huge reductions in OTC drugs as well!

[Wretched Excess]

this wouldn't be a problem if government wasn't trying to set the market price for prescription drugs in
the first place.  then there wouldn't be a need to "protect taxpayers" from anything.

I'm going to have to disagree WE, when it comes to prescription drugs... I'm not sure that an actual competitive market can exist in America, with our current system.

I don't know how you can say that when such competition actually exits now. 

You bet it does, Generic price wars everywhere! Now there are huge reductions in OTC drugs as well!

where the federal government pays the bills, local price wars are literally meaningless. 

[RobJohnson]

this wouldn't be a problem if government wasn't trying to set the market price for prescription drugs in
the first place.  then there wouldn't be a need to "protect taxpayers" from anything.

I'm going to have to disagree WE, when it comes to prescription drugs... I'm not sure that an actual competitive market can exist in America, with our current system.

I don't know how you can say that when such competition actually exits now. 

You bet it does, Generic price wars everywhere! Now there are huge reductions in OTC drugs as well!

where the federal government pays the bills, local price wars are literally meaningless. 

yup

[ToastedRachel]

"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. "


This sounds a lot like the disgruntled ***** who works overnights opposite me.

I've never seen any evidence of any auto-substituting going on, but I've only been here 3 months.

[Wretched Excess]

"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. "


This sounds a lot like the disgruntled ***** who works overnights opposite me.

I've never seen any evidence of any auto-substituting going on, but I've only been here 3 months.

did you see that at your last place?

(Rachel is actually a pharmacist)

[ToastedRachel]

"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. "


This sounds a lot like the disgruntled ***** who works overnights opposite me.

I've never seen any evidence of any auto-substituting going on, but I've only been here 3 months.

did you see that at your last place?

Both CVS and Kroger have such primitive, low rent technology that the computer is too dumb to auto-sub generics in for brand...so like if the rx reads "Protonix 40mg", you have to manually enter "pantoprazole"...at least that's what I remember but you know my memory. Here, when I am entering an rx, if I type in "Protonix" the computer will automatically pull up the generic unless I enter in YES under the Do Not Substitute checkbox. Its awesome, because the computer knows exactly which manufacturer we have in stock. It saves a shit load of time later on when you are checking the rx and everything needs to match. At Kroger, I would physically have to go look what manufacturer we were currently stocking, or the label would be technically incorrect. Plus, it makes inventory so much more accurate.

The Walgreens IT people are light years ahead of the other chains. They must have someone like WE working there. 

[RobJohnson]

The Walgreens IT people are light years ahead of the other chains.

That is good to know, thanks.