US Pharma Companies Pay Off Medicaid Fraud Claims

21 October 2009 (Last Updated October 21st, 2009 18:30)

The US state of Florida has reached an agreement with four pharmaceutical companies to resolve claims that they violated US laws by failing to pay appropriate rebates for drugs paid for by Medicaid. Under the agreement, Florida will receive more than $7m from settlements with AstraZeneca

The US state of Florida has reached an agreement with four pharmaceutical companies to resolve claims that they violated US laws by failing to pay appropriate rebates for drugs paid for by Medicaid.

Under the agreement, Florida will receive more than $7m from settlements with AstraZeneca Pharmaceuticals, Ortho McNeil Pharmaceutical, Mylan Pharmaceuticals and UDL Laboratories.

Between 1998 and 2005, the state alleged that the pharmaceutical companies had knowingly made false statements about several prescription medications that resulted in substantial discount rebates in the fees the companies were required to pay to the Florida Medicaid programme.

The settlement will provide $914,000 to the state's General Revenue Fund, nearly $2.2m to the state's Medicaid programme and the remainder to the federal Medicaid programme for Florida.