Government

Texas sues drugmakers over Medicaid pricing

NEWS IN BRIEF — Posted June 28, 2004

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Texas Attorney General Greg Abbott in late May filed a whistle-blower lawsuit against three drug manufacturers. The suit alleges that the companies falsely reported the wholesale prices of certain drugs and devices in order to bill Medicaid at a higher rate. Ven-a-Care of the Florida Keys Inc. asked Texas to investigate the pricing system.

The lawsuit names Abbott Laboratories Inc., Baxter Healthcare Corp. and B. Braun Medical Inc. Texas is asking the court to award three times the actual damages, which Attorney General Abbott estimates to be $8 million. It also asks for civil penalties and attorneys fees. The drug companies have said there is no merit to the allegations.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/06/28/gvbf0628.htm.

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