Drug company to pay $3.1 million in Medicaid settlement

A pharmaceutical company has agreed to pay the state of Missouri $3.1 million in a settlement of litigation related to accusations of Medicaid fraud.

Columbus, Ohio-based Roxane Inc. allegedly engaged in a pricing scheme that resulted in the state Medicaid program paying too much for certain prescriptions, according to a news release from state Attorney General Chris Koster.

The company, now a part of German-based Boehringer Ingelheim Roxane Inc., allegedly reported prices for Medicaid to use as its reimbursement rate that were higher than what pharmacies paid for the drug. The company, according to the release, then marketed the higher reimbursement rates to pharmacies as encouragement to stock Roxane's medicines.

Roxane denies wrongdoing in the settlement, according to the release.

This is Missouri's third settlement with a pharmaceutical company for similar issues since 2006.

“One of my top priorities as Attorney General is to go after companies that cheat Missouri taxpayers through Medicaid fraud,” Koster said in the release. “This settlement is a significant amount of money to be returned to taxpayers and should serve as notice to pharmaceutical companies that the Attorney General’s Medicaid Fraud Unit will continue to hold them accountable.”[[In-content Ad]]