Iowa has settled Medicaid fraud claims with a number of drug manufacturers for $4.3 million. The claims against the pharmaceutical companies involved submitting false prices which resulted in taxpayers being overcharged for medications. Eight of 78 companies the state sued in federal court two years ago are paying to settle allegations that they intentionally cheated the Iowa Medicaid program by charging inflated drug prices. The settlement was announced by Attorney General Tom Miller, who said the settlement represents a very small portion of the drug companies that were sued by the state in 2007. The state’s lawsuit continues against about 70 other drug manufacturers. Each is alleged to have overpriced its products to increase reimbursements paid by the state’s Medicaid program.
The drug companies that settled are among the smallest of the ones that were sued by Iowa. The fraudulent prices exceeded the true prices by as much as 1,000% between 1992 and 2005. During that period, Iowa’s Medicaid program spent $1.6 billion on the 78 companies’ drugs.
Source: Des Moines Register
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