KHN Morning Briefing

Summaries of health policy coverage from major news organizations.

Pharmaceutical Companies Pay $89 Million for Overcharging Medicaid in Alabama

Dow Jones Newswires reports that "pharmaceutical companies agreed to pay an additional $89 million to Alabama in settlement of litigation against 72 companies accused of defrauding the state's Medicaid system by overcharging for drugs." Filed in 2005, the lawsuit concerned massive reporting of false prices to Alabama's Medicaid agency that occurred between 2001 and 2005.

 

Dow Jones reports that "the state already reached settlements totaling $34.8 million and won jury verdicts of more than $352.4 million against defendants in the case." It also noted that lawsuits are pending against 45 defendants in Alabama and that 22 other states have similar suits pending (Shwiff, 5/22).

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