Drug companies pay Ohio $8.44 million in Medicaid billing suit

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Photo illustration courtesy of Flickr user Vizzzual.comAbbott Laboratories, Pharmacia,  Roxane Laboratories and Warrick Pharmaceuticals have paid Ohio $8.44 million to settle a five-year-old suit over misleading drug prices.

The state had accused the four companies of fraud, unjust enrichment and violating the Consumer Sales Practices and Deceptive Trade Practices Acts for reporting false and misleading information about their wholesale drug prices. That information resulted in higher costs for the state’s Medicaid Program, according to a release from the Ohio Attorney General’s Office.

For example, the attorney general’s office pointed out in 2004 that a respiratory medicine by Roxane was billed at 47 cents a unit when the wholesale price was closer to 11 cents a unit.

In the settlement, Abbott paid $1.34 million, Pharmacia paid $400,000, Roxane paid $2.4 million and Warrick paid $4.3 million. Drugmaker Dey was also part of the earlier suit. It settled in 2006 for $2.9 million cash and $1.1 million in donated pharmaceuticals.

Ohio’s Attorney General Richard Cordray stated his office was “sending the message that we will insist on fair and honest drug pricing.”

[Photo courtesy of Flickr user Vizzzual.com]

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Chris Seper

By Chris Seper MedCity News

Chris Seper runs MedCityNews.com and contributes regularly to the site. He is the vice president of healthcare for Breaking Media, MedCity's corporate owners. Reach him at [email protected]
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