Attorney General Jay Nixon fired off a press release today announcing that he has handed over a $3.1 million dollar check to the Department of Social Services from a Medicaid fraud settlement with pharmaceutical company Schering-Plough.
Nixon said it is part of a $91 million-dollar nationwide settlement with the company known for its anti-allergy medication Claritin.
Nixon said the settlement resolves allegations that "the Delaware-based company's marketing and distribution practices of Claritin and other drugs resulted in the Medicaid program paying too much in reimbursement in some cases not receiving the full amount of rebates in others." Schering-Plough allegedly misreported prices to the Health Care Financing Administration for Claritin. Those misreported prices meant Medicaid programs failed to receive millions in rebates.
According to Nixon, $7.3 million will go back to taxpayers and more than $3.1 million will go back into Medicaid (ahem . . . Mo. HealthNet.)
I'm sure we'll be hearing much more about provider fraud from Nixon as we inch closer to 2008.
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