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Wednesday, December 21, 2011

Merck to Pay $24 Million to Massachusetts for Pricing Fraud

Merck became the thirteenth and final drug manufacturer to settle a pending suit brought by the state of Massachusetts alleging that it reported inflated prices in an effort to increase the reimbursements paid for its drugs by Medicaid and other health insurance plans.  The company has agreed to pay $24 million.  Merck lost its case at trial in September 2010 and was ordered to pay $18 million.  Under this settlement, both sides will withdraw their pending appeals.

Merck settled a federal suit involving similar alleged misconduct in December 2009; the company agreed to pay $44.5 million.

Read the entire article, “Lawsuit Over Inflated Drug Prices Ends, AG Coakley Recovers $47 Million for Medicaid Program"

Posted by eithurburn on 12/21 at 12:46 PM
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