Kmart to pay for allegedly overbilling Hawaii Medicaid customers


Kmart has agreed to pay tens of thousands of dollars to settle allegations that the company overbilled Hawaii’s Medicaid program for more than a decade.

According to the attorney general’s office, overbilling occurred between Sept. 1, 2004 and Dec. 31, 2014.

In the mid-2000s, officials say Kmart and other pharmacies began offering discounted generic drugs to cash-paying customers.

Although some pharmacies with similar programs gave federal health care programs the benefits of these prices, it was alleged that Kmart did not, and instead billed and received $5 from Medicaid for a prescription that cash-paying customers could purchase for $4.

Under the settlement agreement, Kmart agreed to pay a total of $84,192.68, which will be shared between the federal and state government. It does not mean the company admits any fault or wrongdoing.

In Hawaii, Kmart still operates stores in Kailua-Kona and Lihue.

Its remaining Oahu store, which was located in Kapolei, closed last year.

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