Medicaid Program

Bristol-Myers Squibb to start paying states in Medicaid drug fraud

A number of 43 states will receive money from drug maker Bristol-Myers Squibb as part of a nationwide settlement with the company that concludes an investigation into whether the company overcharged Medicaid program for its drugs and tried to advertise one of its drugs for an unapproved used.

Medicaid is a health insurance program for the poor that is financed by state and federal governments.

The National Association of Medicaid Fraud Control Units reported earlier that 43 states, the District of Columbia and the federal government settled with the New York-based Bristol-Myers for $389 million plus interest in September last year.

The settlement addresses several allegations against Brystol-Myers including reporting inflated prices for various prescription drugs, making illegal payments to physicians, health care providers and pharmacies in exchange for purchasing Bristol-Myers and Apothecon products, promoting the sale and use of Abilify, an antipsychotic drug, for uses not approved by the US Food and Drug Administration and misreporting sale prices for Serzone, an antidepressant, resulting in the improper reduction of the amount of rebates paid to state Medicaid programs.

Federal laws require pharmaceutical companies give their lowest prices to Medicaid programs and that was the basis of complaints that led to the settlement.

“Bristol-Myers is pleased to have resolved these matters from the past and is proud of its commitment to conduct business with the highest standards of integrity in its mission to extend and enhance human life,” said a spokesperson of the company on Tuesday.

(Published by eFlux Media - july 16, 2008)