Texas Getting $36 Million in Medicaid Fraud Settlement

The Texas attorney general's office secured $36 million Friday in a lawsuit settlement with Pfizer Inc. and Endo Pharmaceuticals, which had been accused of illegally inflating the market prices of certain drugs in reports to the state, causing Texas to overpay millions in Medicaid reimbursements to pharmacists.

In a prepared statement, the Texas attorney general’s office said, “When manufacturers improperly report inflated market prices for their drugs, Medicaid reimburses pharmacies at vastly inflated rates.” By misreporting what was being paid for the drugs, the companies unlawfully induced pharmacies and other providers to purchase their products, the state alleged ...

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