Government
New York City sues drug makers over Medicaid drug prices
NEWS IN BRIEF — Posted Aug. 23, 2004
The City of New York filed suit Aug. 5 against 44 pharmaceutical companies it accuses of Medicaid overcharges that cost the city millions. The complaint alleges that the companies inflated the prices used to determine Medicaid drug reimbursements and that by reporting false price information they underpaid Medicaid the rebates the federal government requires. The city is seeking to recover its 25% share of the program overcharges and triple damages.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/08/23/gvbf0823.htm.