Home
Subscribe (free)
About NaturalNews
Contact Us
Write for NaturalNews
Media Info
Advertising Info

Medicaid

Texas Attorney General Sues Pharmaceutical Companies for Overcharging State Medicaid

Monday, November 24, 2008 by: David Gutierrez, staff writer
Tags: Medicaid, health news, Natural News


Most Viewed Articles
https://www.naturalnews.com/024893_Texas_Medicaid_drug.html
Delicious
diaspora
Print
Email
Share

(NaturalNews) The Texas Attorney General's office has filed lawsuits against four manufacturers of generic prescription drugs, accusing them of illegally misreporting their drug prices in order to get more money out of the state Medicaid program.

"The Attorney General's enforcement action reflects a continuing crackdown on waste, fraud and abuse in the Medicaid system," the office said in a statement.

The lawsuits allege that Alpharma Inc., Barr Pharmaceuticals, Par Pharmaceutical Inc. and Watson/Schein Pharmaceuticals Inc. deliberately misreported their drug prices to Medicaid, causing the state health care agency to pay too much in reimbursements.

Because Medicaid uses these prices as the basis for prescription cost reimbursements, price inflation by drug companies causes the program to overpay pharmacies for certain drugs. This leads to exceptionally high profits for pharmacies, thus encouraging pharmacists to preferentially prescribe brands whose prices have been misreported - all of which leads to an increase in company profits.

Recently, the state of Texas received more than $15.7 million from major pharmaceutical corporation Bristol-Myers Squibb in a settlement of a similar lawsuit. Forty-two states had accused the company of inflating prices of its anti-depression drug Serzone, as well as several generic anticancer drugs. The company has also been charged with illegally marketing its atypical antipsychotic Abilify for unapproved uses, including for the treatment of children and of seniors with dementia-related psychosis.

The Texas attorney general's office has also recovered $8.5 million from Baxter Healthcare, $10 million from Boehringer Ingelheim/Roxane Laboratories, $18.5 million from Dey Inc. and $27 million from Schering-Plough/Warrick Pharmaceuticals for Medicaid price fraud.

"In 2006 alone, the Texas Medicaid program cost more than $17 billion," the attorney general's office said. "To save taxpayer dollars, Attorney General Abbott has dramatically expanded both the Civil Medicaid Fraud Section and the Medicaid Fraud Control Unit."

Lawsuits are still pending against B Braun Medical Inc. and Abbot Laboratories Inc.

Sources for this story include: www.bizjournals.com.

Receive Our Free Email Newsletter

Get independent news alerts on natural cures, food lab tests, cannabis medicine, science, robotics, drones, privacy and more.


comments powered by Disqus


Natural News Wire (Sponsored Content)

Science.News
Science News & Studies
Medicine.News
Medicine News and Information
Food.News
Food News & Studies
Health.News
Health News & Studies
Herbs.News
Herbs News & Information
Pollution.News
Pollution News & Studies
Cancer.News
Cancer News & Studies
Climate.News
Climate News & Studies
Survival.News
Survival News & Information
Gear.News
Gear News & Information
Glitch.News
News covering technology, stocks, hackers, and more