Government

Fla. attorney general accuses drug companies of Medicaid fraud

NEWS IN BRIEF — Posted Aug. 15, 2005

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Florida Attorney General Charlie Crist last month filed a lawsuit against three pharmaceutical manufacturers, alleging that they committed Medicaid fraud that cost the state program $25 million.

The lawsuit claims that Mylan Laboratories Inc., Canonsburg, Pa.; Israel-based Teva Pharmaceutical Industries Ltd. and Watson Pharmaceuticals Inc., Corona, Calif., violated the Florida False Claims Act. The law allows the state to recover triple the damage amount, meaning it could recover $75 million. This is the third such lawsuit Crist has filed against drug manufacturers in the past two years.

The lawsuit accuses the companies of inflating their price estimates of drugs, allowing pharmacies to receive excessive reimbursement for them. Crist alleges the companies used the scheme to convince pharmacies to sell more of its products.

Representatives from Mylan and Watson declined to comment on the allegations. A Teva spokesman did not return a call seeking comment.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/08/15/gvbf0815.htm.

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