KHN Morning Briefing

Summaries of health policy coverage from major news organizations.

Medicaid Fraud Settlement Becomes Part Of Virginia Gubernatorial Campaign

Virginia Attorney General Ken Cuccinelli says he is taking on the IRS over a Medicaid fraud settlement payment from which the state is owed $125 million. But Democrats in the state's congressional delegation say they had been working on the issue for months and accused him of using his office for a campaign stunt in the gubernatorial race.

The Washington Post: Cuccinelli Takes On IRS Over Payment to Virginia
Cuccinelli is in a bitter fight with McAuliffe, a Democrat, to succeed Gov. Robert F. McDonnell (R). The attorney general called a morning news conference to announce that the IRS was refusing to release $125 million, part of the assets forfeited in a Medicaid fraud investigation that his office led. The case produced a $1.6 billion plea agreement with Abbott Laboratories for illegally promoting unapproved uses of its drug Depakote. It was the second-largest Medicaid fraud settlement in U.S. history (Vozzella, 6/5).

The Associated Press/Washington Post: After Va. Attorney General Complains Of Delay, Feds Cite Requirements For Releasing $115M
Hours after Virginia Attorney General Kenneth Cuccinelli complained that the Internal Revenue Service was blocking the release of more than $100 million owed to Virginia from a Medicaid settlement, federal officials said Wednesday that they are prepared to cut a $10 million check but need additional information before transferring the rest (6/5).

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