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Texas AG sues three pharmas, alleging Medicaid fruad

Pharma Compliance Alert, June 27, 2007

Texas Attorney General Greg Abbott last week charged Mylan Laboratories, Sandoz, and Teva Pharmaceuticals and their subsidiaries with defrauding the Medicaid system out of tens of millions of dollars.

According to the lawsuit, the pharmas sold hundreds of Medicaid-covered drugs at deep discounts to large companies such as Wal-Mart, CVS Pharmacy and Walgreens. However, they did not provide the same pricing information to Medicaid, resulting in state officials being misled about current market prices for the drugs, the suit says.

Frequent whistleblower Ven-a-Care of the Florida Keys brought the case to the attorney general's attention.

According to the Houston Chronicle, lawmakers recently urged Abbott to work on a backlog of 140 Medicaid fraud cases and appropriated $12.2 million over the next two years to hire 41 more employees to do so.

Since Abbott took office, the civil and criminal Medicaid fraud sections have recovered almost $190 million, his office said. Click here to read more about the lawsuit.

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