Walgreen pays $35 million to settle Medicaid claims

WASHINGTON (Reuters) - Walgreen Co agreed to pay $35 million to settle claims it improperly switched patients to more expensive versions of three drugs to claim more money from Medicaid, the Justice Department said on Wednesday.

In a statement, Walgreen denied any wrongdoing and said the settlement would have no effect on its financial results.

The Justice Department said that between 2001 and 2005 some Medicaid patients who were prescribed tablets of the antacid ranitidine were given capsules, some who were prescribed capsules of the antidepressant fluoxetine were given tablets, while some Parkinson's patients prescribed Eldepryl tablets were given capsules.

In each case, the version given out was more expensive than what was prescribed, the Justice Department said.

Medicaid is a state and federal health insurance program for the poor.

"This is our third settlement with a company that has engaged in improper drug switching, and it represents the government's continuing commitment to vigorously pursue fraud in government health care programs," said Gregory Katsas, acting assisting attorney general for the Civil Division.

Walgreen said the medications involved in the investigation were made as both tablets and capsules.

"Between 2001 and 2004, Walgreens dispensed one form of each of the generic drugs at issue instead of another form of the same drug," the company said in a statement. "Walgreens believes the reimbursements it received from Medicaid were consistent with applicable regulations."

(Reporting by Diane Bartz; editing by Jeffrey Benkoe and Andre Grenon)