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Kmart Settles Over Medicaid Fraud, Montana Receives Payment

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Photo courtesy of Mikekalasnik/Flickr

The Montana Department of Health and Human Services received $4,472.95 from the Kmart Corporation after a federal settlement over fraud allegations this week.

Kmart was accused of violating the federal False Claims Act by billing the federal government for the full cost of a prescription through services like Medicaid, Medicare, and Tricare, but then dispensing only partial prescriptions.

“Medicaid fraud is bad for Montana’s program recipients, providers, and taxpayers,” said Attorney General Tim Fox. “This settlement will help ensure that government funds intended to help low-income Montanans who need help paying for their medications will be used as they should be. I want to thank Assistant Attorneys General Ken Varns and Chris McConnell at the Montana Department of Justice for their continued diligence in recovering scarce public resources and protecting the Medicaid program.”

Although Montana received less than $5,000, the multi-state Kmart settlement totaled over $2.5 million.

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