Articles Tagged with Medicaid Fraud

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Pharmaceutical company Mylan will pay a total of $20.3 million to the Massachusetts Medicaid program (MassHealth) to resolve allegations that it knowingly underpaid rebates owed to the Medicaid program for EpiPens dispensed to MassHealth members, Attorney General Maura Healey announced today.

The payment is part of a global settlement with the United States, the District of Columbia, and all 49 other states settling allegations against Mylan Inc. and its wholly-owned subsidiary, Mylan Specialty L.P. (Mylan).

“Mylan knowingly misrepresented this drug to MassHealth in order to underpay on rebates and make a profit at the expense of our state,” said AG Healey. “This settlement brings critical funds back to our MassHealth program. Companies that receive payments from taxpayer-funded programs must be held accountable when they abuse this system.”

Sue Thayer, a former Planned Parenthood Heartland Clinic Manager has filed a whistleblower lawsuit under The False Claims Act, alleging that the company filed nearly 500,000 false claims with Medicaid, from which PP received and retained over $28 million. In the suit, Thayer says that Planned Parenthood implemented the “C-Mail” program which automatically mailed a year’s supply of birth control pills to women who had only been seen once at the PP clinic. Those women were usually seen by personnel who were not qualified health care professional the suit alleges. Planned Parenthood’s cost for a 28 day supply of birth control pills mailed to clients was $2.98 but the Medicaid reimbursement received was $26.32. It is also alleged that when the postal service returned the pulls, PP would resell the same birth control pills and bill Medicaid again instead of crediting Medicaid or destroying the pills. The lawsuit, Thayer v. Planned Parenthood of the Heartland is pending in the District Coourt for the Southern District of Iowa. Jeffrey Newman represents whistleblowers. email; Jeff@JeffNewmanLaw.com