Kmart settles drug billing charges for $2.55M

DETROIT (AP) — Federal prosecutors in Detroit say that the Kmart discount chain has agreed to pay $2.55 million to settle complaints that it overbilled government health programs when it partially filled drug prescriptions.

U.S. Attorney Barbara McQuade said Monday that the settlement includes payments to the U.S., 30 states, Puerto Rico and the Virgin Islands.

Kmart is based in the Detroit suburb of Troy and is part of Hoffman, Ill.-based Sears Holdings Corp.

McQuade says Kmart violated the False Claims Act by billing Medicaid, the Federal Employee Health Benefits Program and other health programs for all drugs included in a prescription in cases when it dispensed only part of the prescribed drugs.

She says Kmart returned the drugs to inventory.

The U.S. says ex-Kmart pharmacist Mark Kirsch gets a $310,000 whistleblower reward.

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