North Carolina Department of Justice
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Attorney General Josh Stein Announces Nearly $1 Million Settlement with K-Mart over Medicaid Overbilling

Release date: 4/26/2018


(RALEIGH) Attorney General Josh Stein today announced a settlement with Kmart Corporation (K-Mart) over allegations that K-Mart charged the Medicaid program more than its usual and customary charge for certain drugs. K-Mart will pay North Carolina and the federal government $932,492.11.
 
“Overbilling for drugs is unacceptable,” said Attorney General Stein. “It cheats taxpayers and harms the Medicaid program – potentially keeping needed health care services from other people. My office will continue to fight against this type of abuse.”
 
In the mid-2000s, K-Mart began to offer discounted generic drugs to cash-paying customers through a variety of programs. It was alleged that K-Mart billed and received $5 from Medicaid for a prescription that cash-paying customers could purchase for $4. As a result of K-Mart’s actions, it received reimbursements from Medicaid, Medicare, and other federal programs that were higher than it was entitled to receive in violation of federal and state false claims statutes.

Contact:
Laura Brewer (919) 716-6484
 

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