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.