Four pharmaceutical companies have agreed to settle False Claims Act allegations relating to Medicaid fraud for a combined $124 million. Mylan Pharmaceuticals Inc., UDL Laboratories Inc., AstraZeneca Pharmaceuticals and Ortho McNeil Pharmaceutical Inc. entered into settlement agreements with the Justice Department in claims that the companies failed to pay appropriate rebates to state Medicaid programs for drugs that the state programs paid for. According to the Justice Department, the companies agreed to pay quarterly rebates to Medicaid based on the amount of money the state programs were paying for the pharmaceutical companies’ drugs.
A lead prosecutor in the case, John Farley, an Assistant U.S. Attorney in Concord, says that health care fraud prosecution is a big concern. Mylan and UDL agreed to pay $118 million to resolve allegations that they underpaid their rebate obligations. AstraZeneca paid $2.6 million to the state and federal governments, and Ortho McNeil paid $3.4 million. Assistant Attorney General Tony West had this to say about the settlements:
These cases exemplify the strong cooperation between the Department of Justice and the states in protecting American taxpayers.
John Kacavas, U.S. Attorney for the District of New Hampshire, said in a statement that “[t]he government is committed to identifying health care fraud and ensuring that companies that benefit from doing business with the government agree to play by the rules.”
I wonder how the Alabama Supreme Court feels about a drug company having to “play by the rules?”
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