$1.5 Million Recovery for Medicaid Program in National Investigation
HARRISBURG - Attorney General Tom Corbett today announced that the Attorney General's Medicaid Fraud Control Section has recovered more than $1.5 million on behalf of the state's Medicaid program as part of a national agreement with three pharmaceutical companies involving drug pricing.
Corbett said the settlements involve Mylan Pharmaceuticals, headquartered in West Virginia; AstraZeneca, based in the United Kingdom; and Ortho McNeil Pharmaceuticals, of New Jersey.
Corbett said the settlements resolve allegations that the companies improperly manipulated prices by incorrectly classifying numerous drugs, resulting in lower rebates being paid to the Medicaid program.
"Medicaid is intended to serve Pennsylvania families who are struggling with limited incomes or disabilities," Corbett said. "Any money unfairly diverted from Medicaid directly impacts the quality and availability of care for our most vulnerable residents and increases expenses for taxpayers - who ultimately pay for these services."
Corbett said the national settlement agreements will result in the recovery of $1,580,799 for Pennsylvania, including restitution for higher drug prices paid by the state's Medicaid program, along with interest.
Under the terms of the agreements, Mylan Pharmaceuticals will pay $1,426,399; AstraZeneca will pay $127,112; and Ortho McNeil Pharmaceuticals will pay $27,268.
Corbett said the state recovery will be split between the Pennsylvania Department of Public Welfare, which administers Medicaid in the Commonwealth, along with the federal government, which jointly funds Medicaid programs across the country.
Pennsylvania's portion of the settlement proceeds was received this week by the Attorney General's Medicaid Fraud Control Section and has been forwarded to the Department of Public Welfare.
http://www.attorneygeneral.gov/press.aspx?id=4795
Corbett said the settlements involve Mylan Pharmaceuticals, headquartered in West Virginia; AstraZeneca, based in the United Kingdom; and Ortho McNeil Pharmaceuticals, of New Jersey.
Corbett said the settlements resolve allegations that the companies improperly manipulated prices by incorrectly classifying numerous drugs, resulting in lower rebates being paid to the Medicaid program.
"Medicaid is intended to serve Pennsylvania families who are struggling with limited incomes or disabilities," Corbett said. "Any money unfairly diverted from Medicaid directly impacts the quality and availability of care for our most vulnerable residents and increases expenses for taxpayers - who ultimately pay for these services."
Corbett said the national settlement agreements will result in the recovery of $1,580,799 for Pennsylvania, including restitution for higher drug prices paid by the state's Medicaid program, along with interest.
Under the terms of the agreements, Mylan Pharmaceuticals will pay $1,426,399; AstraZeneca will pay $127,112; and Ortho McNeil Pharmaceuticals will pay $27,268.
Corbett said the state recovery will be split between the Pennsylvania Department of Public Welfare, which administers Medicaid in the Commonwealth, along with the federal government, which jointly funds Medicaid programs across the country.
Pennsylvania's portion of the settlement proceeds was received this week by the Attorney General's Medicaid Fraud Control Section and has been forwarded to the Department of Public Welfare.
http://www.attorneygeneral.gov/press.aspx?id=4795
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