Corporate Compliance

McKesson to pay $190 million to settle False Claims violations

Compliance Monitor, May 2, 2012

Inflated price reporting on prescription drugs that led to higher payment rates for pharmaceuticals under Medicaid cost McKesson Corp. $190 million in a settlement reached with the U.S. Department of Justice (DOJ), government officials announced April 26.

McKesson agreed to pay the United States more than $190 million to resolve claims that it violated the False Claims Act by causing Medicaid to overpay for the drugs. The company reported the inflated pricing data to First DataBank (FDB), a publisher of drug prices used by most state Medicaid programs to set payment rates for pharmaceuticals, according to a DOJ press release.

“In addition to the $190 million—which represents the $187 million settlement and interest—state governments can separately negotiate with McKesson to resolve claims based on the states’ shares of the Medicaid overpayments,” the DOJ said in its press release.