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Four Pharmaceutical Companies Pay $124 Million for Submission of False Claims to Medicaid
Date:10/19/2009

L, Triamterene & HCTZ, Propox Naps & APAP, Flecainide Acetate, Trihexyphenidyl, Ranitidine HCL syrup, Sucralfate Suspension, Selegiline HCL and Bumetanide). Because the Medicaid program is funded by both the federal and state governments, the federal government received $60,896,476.00, the states $49,824,389.00 of the settlement amount, and $7,279,135.00 will be paid to entities that participated in the Public Health Service's Drug Pricing Program.

Separately, AstraZeneca paid $2.6 million ($1.43 million to the federal government and $1.17 million to the states) to resolve allegations that it underpaid its rebate obligations with respect to Albuterol. Ortho McNeil paid $3.4 million ($1.87 million to the federal government and $1.53 million to the states) to resolve allegations that it underpaid its rebate obligations with respect to Dermatop.

"The Civil Division will continue to work with our state partners to ensure that Medicaid programs, which provide health care to more than 58 million Americans, receives the same discounts that any larger insurer gets," Tony West, Assistant Attorney General for the Civil Division, said. "These cases exemplify the strong cooperation between the Department of Justice and the states in protecting American taxpayers."

This case was brought under the False Claims Act, which allows for private persons to file suits on behalf of the government. The whistleblower, Ven-A-Care, a corporation located in Key West, Fla. will receive a total of $10,787,392 as its share of today's recovery.

"These settlements are the culmination of several years of hard work on the part of the government's investigators and attorneys," said John P. Kacavas, U.S. Attorney for the District of New Hampshire. "The settlement with Mylan and UDL is the largest health care fraud recovery that the U.S. Attorney's Office in New Hampshire has ever obtained. The settlements show that the government is committed to
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SOURCE U.S. Department of Justice
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