Reuters.com: Kmart Pays $1.4 Million to Settle U.S. Charges Over Medicare Inducements

Kmart is accused of allowing Medicare beneficiaries to use manufacturer coupons to reduce pay and provide access to expensive brand medications instead of the preferred generic options, as well as offering gasoline discounts based on prescription volume. The practices violate the False Claims Act, which prohibits offering Medicare users benefits to influence pharmacy utilization, forcing the company to pay $1.4 million to the government to settle the suit.