Wednesday, December 28, 2011

Texas Attorney General settles Medicare fraud case

Texas Attorney General Greg Abbott and pharmaceutical manufacturer Actavis Mid-Atlantic LLC and Actavis Elizabeth LLC made an $84 million settlement agreement on Wednesday.

The agreement resolves the state?s civil Medicaid fraud enforcement actions against Actavis.

Actavis was charged with defrauding the taxpayers and improperly reporting drug prices to the Texas Medicaid program. The settlement agreement allows the Attorney General?s office to recover $29.23 million for Texas? general revenue fund.

In February this year, a Travis County jury found that Actavis falsely reported its drug price to the Medicaid program. As a result, the Medicaid program overpaid pharmacies for Actavis? prescription products.

The pharmaceutical manufacturer appealed the verdict and resulting court judgment. To avoid delay of timely reimbursement, the state worked to resolve its enforcement action through negotiating the settlement agreement.

Texas Attorney General Greg Abbott and pharmaceutical manufacturer Actavis Mid-Atlantic LLC and Actavis Elizabeth LLC made an $84 million settlement agreement on Wednesday.

The agreement resolves the state?s civil Medicaid fraud enforcement actions against Actavis.

Actavis was charged with defrauding the taxpayers and improperly reporting drug prices to the Texas Medicaid program. The settlement agreement allows the Attorney General?s office to recover $29.23 million for Texas? general revenue fund.

In February this year, a Travis County jury found that Actavis falsely reported its drug price to the Medicaid program. As a result, the Medicaid program overpaid pharmacies for Actavis? prescription products.

The pharmaceutical manufacturer appealed the verdict and resulting court judgment. To avoid delay of timely reimbursement, the state worked to resolve its enforcement action through negotiating the settlement agreement.

Source: http://feeds.bizjournals.com/~r/vertical_38/~3/KOoklCJ1Qgo/texas-attorney-general-settles.html

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