Missouri receives $4.3 mil Medicaid settlement

Missouri Attorney General Jay Nixon and representatives from four other states brought a civil suit against Tennessee-based King Pharmaceuticals Inc. for reporting incorrect prices, which resulted in the underpayment of rebates to state Medicaid programs.

King entered into civil agreements yesterday that total $124 million with Missouri, 48 other states and the U.S. Department of Justice. Missouri’s share of the agreement will amount to $4.3 million, and the balance will go to the federal government for Medicaid costs.

The suit alleges the company did not accurately calculate its prices from 1994 to 2002. Medicaid and other programs that received rebates from King for reimbursing providers for the drugs were underpaid $62 million nationwide.

The settlement also requires that the company enter into a Corporate Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services to ensure it follows pricing laws in the future.