Bluefield Daily Telegraph, Bluefield, WV

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October 18, 2013

Va to get $37M in Medicaid fraud settlement

RICHMOND, Va. — Virginia is receiving $37 million as part of a settlement with one of the largest pharmaceutical wholesalers.

Attorney General Ken Cuccinelli announced the agreement with McKesson Corp. on Friday.

Cuccinelli’s office alleged that McKesson violated the Virginia Fraud Against Taxpayers Act by conspiring to inflate prices for more than 400 brand-named prescription drugs. That caused Virginia’s Medicaid program to overpay for those drugs based on published price information.

The settlement will return more than $30 million to Virginia’s General Fund Health Care account for both damages and penalties. The remaining amount is for other costs and fees.

Virginia had refused to join a previous settlement with McKesson and 29 states that shared $151 million. Cuccinelli said that’s because it didn’t cover the total loss to the state’s Medicaid program.

 

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