Kmart Completes $638K Settlement for Medicaid Overbilling in U.S. Virgin Islands

Retail giant disburses over $638,000 to settle allegations of Medicaid overbilling dating back to the mid-2000s

The V.I. Department of Justice on Monday announced the final distribution of funds from a significant settlement involving Kmart Corporation over allegations of Medicaid overbilling.

According to Acting Attorney General Ian S.A. Clement, Kmart has disbursed $638,553.16 as part of a settlement originally reached in 2017.

The settlement resolves claims that Kmart's pharmacies in the Virgin Islands charged the Medicaid program higher prices than its standard charges for certain generic drugs. The allegations against the retail giant stem from its pricing strategies that began in the mid-2000s, where it offered discounted rates to cash-paying customers but failed to extend these lower prices to federal health care programs.