Walgreens to pay 7.9 million dollar fne for Transfer Gift card Fraud

[Rxnupe]

Wow more bad news for WAGS : http://www.cnn.com/2012/04/20/health/walgreens-prescription-settlement/index.html?hpt=hp_bn12 I honestly would expect CVS to be more likely to commit this act since CVS in the past has run far more gift card promotions then WAG, but I guess WAGS got busted- for as long as I have been with CVS- we actually hate the program and we made sure that no one with Medicaid, Medicare received those cards.

---

Members don't see this ad.

 

[pezdispenser]

The government learned of the allegations in lawsuits filed by two whistle-blowers: Cassie Bass, a pharmacy technician who worked at Walgreens in Detroit, and Jack Chin, an independent pharmacist in Florida.
...
Bass and Chin will get about $1.28 million from the United States for their actions under parts of federal and state False Claims Acts statutes

nice...

 

[Poetic Silence]

nice...

Good thing, too, because that tech is most definitely without a job now.

 

[Rxnupe]

Good thing, too, because that tech is most definitely without a job now.

I actually would like to know the details surely if WAGS let 1 or 2 customers get a gift card who are on medicaid wouldn't be a big deal- but I guess it would have to be a policy where they literally let hundreds of people get gift cars than I guess that's a different story.

 

[BrightLight]

Good thing, too, because that tech is most definitely without a job now.

"Bass and Chin will get about $1.28 million from the United States for their actions under parts of federal and state False Claims Acts statutes, according to the U.S. Justice Department"

Totally worth it. It bet CVS and RA techs will start to document similar cases and contact their lawyers very soon.

 

[297point1]

Good thing, too, because that tech is most definitely without a job now.

Do you know how long it would take a technician to make $640,000 (her half of the settlement) in salary and benefits?

Let's do the math, and be generous while doing so:
$12.50/hour x 40 hours/week x 52 weeks/year = $26,000 plus 30% benefits = $33,800/yr in total compensation

$640,000 / $33,800/yr = 18.9 years (!)

Yes, this assumes no raises over the next 18.9 years, but wow...she doesn't need no stinkin' tech job now!!

 

[Momus]

A whooping 1 hour worth of Walgreen revenue, that's right 1 hour! Hardly shocking... If I run the company, I'll chuckle a bit and keep doing whatever I want >_>

 

[npage148]

Some day I hope I can get my chance to cash in on a large False Claims Act settlement. It's like winning the lottery while kicking some jerk in the nads at the same time. Win/Win

 

[genesis09]

Wags doesn't do that many gift card promotions. I've always been careful to not use coupons/gift card for federal/state insurance holders. I doubt the practice is widespread but accidents occur.

 

[phathead]

Hmmmm wonder when this actually occurred

 

[crossurfingers]

Wow! Perfect execution of leaving a company that's screwing you over while screwing over the company! I've thought about ways I'd like to quit, but this one is awesome!

On the other hand, I wonder if this will affect her ability to get a tech job anywhere else (not that she needs to anymore). I don't think other companies want to hire a whistle blower. But good for her!

 

[spacecowgirl]

Some day I hope I can get my chance to cash in on a large False Claims Act settlement. It's like winning the lottery while kicking some jerk in the nads at the same time. Win/Win

I LOLed. I'll never be the heroine in a John Grisham novel; this would be second best.

 

[amox]

Companies are not allowed to fire as retaliation for the whistleblowing. The tech can keep their job, if they are penalized in anyway such as unfair treatment or termination, the whistleblower can seek more funds.

 

[pezdispenser]

Wags doesn't do that many gift card promotions. I've always been careful to not use coupons/gift card for federal/state insurance holders. I doubt the practice is widespread but accidents occur.

It's been a few years since I worked in the stores, but I do remember quite a few instances where I refused a medicaid/medicare patient a transfer gift card and they went and complained to the store manager, who ended up giving them a 'customer service' gift card anyway...

 

[type b pharmD]

A whooping 1 hour worth of Walgreen revenue, that's right 1 hour! Hardly shocking... If I run the company, I'll chuckle a bit and keep doing whatever I want >_>

Actually in terms of prescription revenue, it's about 7 minutes worth.

Source: (http://investor.walgreens.com/commo...ame=7_--_Historical_Sales_Comps_-_Cleaned.pdf)

 

[vardenafil]

It's been a few years since I worked in the stores, but I do remember quite a few instances where I refused a medicaid/medicare patient a transfer gift card and they went and complained to the store manager, who ended up giving them a 'customer service' gift card anyway...

this happens at my store probably 3 or 4 times a week. my non pharmacy manager actually wrote up a coworker for refusing to give a customer a giftcard after the manager told her to.

 

[Ackj]

Actually in terms of prescription revenue, it's about 7 minutes worth.

Source: (http://investor.walgreens.com/commo...ame=7_--_Historical_Sales_Comps_-_Cleaned.pdf)

That's the thing about these lawsuits. It's a well played gambit. If you earn any amount of business from the promo, it doesn't matter. The new customers you got to come in are pretty likely to stay and generate new revenue, and the fine is but a drop in the bucket. You could even say that fine is a part of the advertising budget.

 

[owlegrad]

Oh I don't know about that, I suspect most of the coupon customers hop around quite a bit. Enough to make it worth it financially? Probably, but still...

 

[Poetic Silence]

Oh I don't know about that, I suspect most of the coupon customers hop around quite a bit. Enough to make it worth it financially? Probably, but still...

People are *****s when it comes to "free stuff." It doesn't even have to be worth it financially. Some people are willing to work a full time job with no benefits hunting down "free stuff."

 

[owlegrad]

People are *****s when it comes to "free stuff." It doesn't even have to be worth it financially. Some people are willing to work a full time job with no benefits hunting down "free stuff."

Right, but they will just move on to the next gift card/promotion. That was my only point.

 

[bananaface]

Do you know how long it would take a technician to make $640,000 (her half of the settlement) in salary and benefits?

Let's do the math, and be generous while doing so:
$12.50/hour x 40 hours/week x 52 weeks/year = $26,000 plus 30% benefits = $33,800/yr in total compensation

$640,000 / $33,800/yr = 18.9 years (!)

Yes, this assumes no raises over the next 18.9 years, but wow...she doesn't need no stinkin' tech job now!!

It has to be quite a bit less after taxes, though. The bracket change will suck off several years.

 

[rx2010]

Oh I don't know about that, I suspect most of the coupon customers hop around quite a bit. Enough to make it worth it financially? Probably, but still...

We offer $25 coupons for transfers and the majority of the coupon shoppers transfer in and out every week between different meds and refills to get a coupon, and they do this between different stores around the city to collect multiple coupons per week. I really hate those $25 coupon offers as the majority of them who do redeem them abuse them.

 

[FlavyFlav]

It has to be quite a bit less after taxes, though. The bracket change will suck off several years.

True, but 8% gain on 500,000 is 40k per year only taxed on capital gains 15%. That's fairly manageable.

 

[Whiskeypunch]

Good thing, too, because that tech is most definitely without a job now.

It's actually the opposite. It's basically impossible for them to get fired now. Also they'll be on the fast track for promotions.

As someone else mentioned in the thread there are nasty penalties for firing a whistle blower or doing anything to retaliate.

I have a family member that worked at a law firm that had a whistle blower turn the firm in for something. That employee is paid a full partner salary and isn't given any work. They keep track of him coming into his office every day in the hope he'll stop showing up so they can have cause to fire him.

Not likely lol.

Browsing the internet for massive $$$? Yes please.

 

[297point1]

It has to be quite a bit less after taxes, though. The bracket change will suck off several years.

For some reason I thought that whistleblower payments were not considered income- sort of like an insurance settlement.

Then I read this: http://www.rothcpa.com/archives/005609.php Wrong, wrong again.

I also didn't factor any payments to attorneys...at the end of the day there is significantly less money here than it appears at first blush. It's a nice chunk of change for a technician, but nothing someone could retire on.

 

[Poetic Silence]

It's actually the opposite. It's basically impossible for them to get fired now. Also they'll be on the fast track for promotions.

As someone else mentioned in the thread there are nasty penalties for firing a whistle blower or doing anything to retaliate.

I have a family member that worked at a law firm that had a whistle blower turn the firm in for something. That employee is paid a full partner salary and isn't given any work. They keep track of him coming into his office every day in the hope he'll stop showing up so they can have cause to fire him.

Not likely lol.

Browsing the internet for massive $$$? Yes please.

Firing her may not be legal, but I can see her resigning her position due to a hostile work environment. With her new rep as a whistleblower, I doubt any other pharmacy would want to hire her.

So, not as much of a win/win as it might appear.

 

[Poetic Silence]

For some reason I thought that whistleblower payments were not considered income- sort of like an insurance settlement.

Then I read this: http://www.rothcpa.com/archives/005609.php Wrong, wrong again.

I also didn't factor any payments to attorneys...at the end of the day there is significantly less money here than it appears at first blush. It's a nice chunk of change for a technician, but nothing someone could retire on.

Wouldn't the lawyers be paid out of the overall penalty rather than out of the reward for the whistleblowers?

Are court winnings really taxable income?

 

[npage148]

It's actually the opposite. It's basically impossible for them to get fired now. Also they'll be on the fast track for promotions.

As someone else mentioned in the thread there are nasty penalties for firing a whistle blower or doing anything to retaliate.

I have a family member that worked at a law firm that had a whistle blower turn the firm in for something. That employee is paid a full partner salary and isn't given any work. They keep track of him coming into his office every day in the hope he'll stop showing up so they can have cause to fire him.

Not likely lol.

Browsing the internet for massive $$$? Yes please.

More like every mistake, late time punch, issue she makes is documented fully and used to fire her for poor job performance with ample documentation to back it up.