A major grocery store operator has agreed to pay a multi-million dollar settlement after being investigated for pricing practices associated with one of its business units.
The case does not focus on how much consumers paid at checkout, but on allegations of how certain amounts are reported behind the scenes.
Federal officials say doctor price reporting practices caused federal health care plans to pay more than they should have, leading to a settlement worth tens of millions of dollars.
The case highlights how disclosure of physician pricing can affect taxpayer-funded health care spending, even when consumers receive discounted pharmacy prices.
Ahold Delhaize agrees to $40M settlement for prescription pricing data
Ahold Delhaize USA (ADRNY) has agreed to pay $40 million to settle allegations that it submitted inflated prescription drug price data to federal health care programs, according to the US Department of Justice (DOJ).
The company operates supermarket chains, including Giant, Hannaford, Stop & Shop, and Food Lion, many of which offer prescription savings programs that offer discount prices to registered customers.
Federal authorities say Ahold Delhaize did not report discounted physician prices as their “usual and customary” rates when billing Medicare Part D, Medicaid, and Tricare. According to the government, this report led to plans to reimburse pharmacies at a higher price than they would have paid.
Payments are related to pharmacy billing procedures and do not include consumer prices at grocery stores.
The details come from a settlement announcement issued by the Department of Justice.
“Federal health care systems rely on pharmacies to report accurate pricing information that is used in applicable payment formulas,” Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division said in a statement.
Shumate added that when pharmacies report prices that are “normal and customary,” federal health care plans end up paying more than they should.
Scott J. Lampert, acting deputy inspector general for investigations at the Office of Inspector General of the US Department of Health and Human Services (HHS-OIG), said improper pricing practices can undermine the integrity of taxpayer-funded health care systems.
Ahold Delhaize agrees to pay $40 million in compensation over reports of inflated prescription drug prices. Wang Ying/Xinhua via Getty
How Ahold Delhaize accommodation will be distributed
The allegations were first brought by Lawrence LaBenne, a pharmacist who worked at an Ahold Delhaize supermarket in Pennsylvania.
Under the civil settlement agreement, LaBenne will receive more than $6 million for reporting the alleged conduct.
Here is some of my previous coverage of the pharmacy business:
Of the total amount paid, approximately $32.9 million will go to the federal government, with the remainder distributed to participating states.
Ahold Delhaize stressed that the agreement resolves allegations and does not involve an admission of wrongdoing.
“We do not accept that there is any wrongdoing in this matter and we are cooperating fully with the government during the review of these government payment questions related to programs that were closed almost ten years ago,” said a spokesperson for Ahold Delhaize in a statement sent by email to Supermarket News.
The company added that its local pharmacy brands remain committed to serving customers and supporting the healthcare needs of the community.
The payment follows Ahold Delhaize’s latest update
The deal comes weeks after Ahold Delhaize released its earnings results for the first quarter of 2026.
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In that report, the company said that US net sales and like-for-like sales were negatively affected by pharmacy price changes associated with the Depreciation and Inflation Act, which had a greater impact than previously predicted.
Ahold Delhaize now expects those changes to reduce US pharmacy sales by about $450 million.
Other food, pharmacy chains have faced similar scrutiny
The allegations involving Ahold Delhaize reflect a broader regulatory and legal focus on the pharmacy industry, particularly regarding how discounted prescription prices are reported to government health care systems.
Many large retailers and pharmacy operators have faced similar investigations or lawsuits related to price disclosure and reimbursement practices.
CVS Health was the subject of a False Claims Act lawsuit regarding pharmacy reimbursement and payment compliance issues.
Walgreens Boots Alliance participated in False Claims Act claims and settlements related to pharmacy reimbursement and prescription drug price disclosures.
Although the specific allegations vary from case to case, they tend to center around how “usual and customary” prescription prices are defined and reported when pharmacies bill federal health care programs such as Medicare Part D and Medicaid.
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This story was originally published by TheStreet on Jun 17, 2026, where it appeared first in the Marketing category. Add TheStreet as a favorite source by clicking here.
