Kmart to pay $84K for overbilling Medicaid in Hawaii

Kmart to pay $84K for overbilling Medicaid in Hawaii

HONOLULU (HawaiiNewsNow) - The once-popular retailer Kmart has agreed to a settlement that will see it pay out tens of thousands of dollars over allegations that it overbilled Medicaid in Hawaii for more than a decade.

The retailer, according to Hawaii's attorney general, offered discounted generic drugs to cash-paying customers before eventually starting to charge more supplies of varying lengths.

Kmart, for example, would bill and receive $5 from Medicaid for a prescription that customers could purchase for $4.

"Thanks to the work of the Medicaid Fraud Control Unit in Hawaii and elsewhere, state and federal taxpayer dollars have been recovered," said Attorney General Doug Chin.

The company no longer operates any stores on Oahu. Only two locations – in Kailua-Kona on Hawaii Island and Lihue, on Kauai – remain open in Hawaii.

The money will go back to the federal and state government.

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