Kmart settles whistleblower prescription drug allegations

Oct 21, 2013

The state of Michigan is getting part of a national settlement involving Kmart and prescription drugs.

The U.S. Justice Department says Kmart has agreed to pay $2.55 million to settle allegations of false prescription claims by its national pharmacy centers to government health insurance programs. 

Kmart allegedly violated the False Claims Act. The Justice Department says the retailer billed government health care programs, like Medicaid, for all drugs included in a prescription when it dispensed only a portion of the prescribed drugs.

The settlement involves 32 states, including Michigan.

A portion of the settlement will go a former Kmart traveling pharmacist, who filed a “whistleblower” complaint in Detroit.   He’ll receive about 300 thousand dollars.