Wal greens has agreed to pay $360 million to settle an arbitration dispute Human that took nearly 5 years. The payout is roughly half of what Walgreens initially needed to pay when the issue was first resolved final 12 months.

Humana started the arbitration course of in 2019 when it alleged that Walgreens had been charging the corporate and its beneficiaries “unlawfully excessive” costs for prescriptions for greater than a decade.

The dispute centered on Walgreens' Prescription Financial savings Membership, a program aimed toward serving to uninsured or underinsured sufferers acquire entry to extra inexpensive medicines. When submitting reimbursement claims to Humana, the pharmacy chain recorded the usual retail costs for the medication allotted beneath this program because the “ordinary and customary” charges somewhat than the particular costs, Humana alleged.

In March of final 12 months, an arbitrator ordered Walgreens to present Humana a A reward of $642 million. However Walgreens pressed on problem that ruling in federal court docket.

In a lawsuit filed in Might, Walgreens mentioned the arbitration “started with betrayal and resulted in a miscarriage of justice.” The pharmacy large argued that it will not must pay greater than half a billion {dollars} “if no strange reader of the contract in query would uncover that Walgreens had completed something improper, and when the proof confirmed that Humana was absolutely conscious of the strategy of Walgreens and did nothing till requested by conflicting counsel.”

In a separate submitting in Might, Humana requested the decide to uphold the $642 million award.

U.S. District Choose Ana Reyes dismissed Walgreens' federal lawsuit Friday — the day after a Walgreens submit with the Securities and Change Fee revealed that the 2 corporations had privately agreed to a brand new award quantity of $360 million on December 29.

Neither Humana nor Walgreens responded MedCity Informationrequests for feedback.

Walgreens continues to face different authorized points associated to claims that it overcharged payers for pharmaceuticals. That is, for instance, the pharmacy chain nonetheless defending itself towards Blue Cross plaintiffs who allege that Walgreens knowingly submitted claims that improperly inflated drug costs.

Picture: SARINYAPINGAM, Getty Photographs