Fort Wayne Indiana Personal Injury Lawyer and Attorney Blog

Indiana to Receive $3.3M in Drug Wholesaler Settlement

The settlement is a response by the McKesson Corporation for lawsuits involving prescription drug overcharges to Indiana Medicaid. The McKesson settlement totals 175M as several states were overcharged and initiated lawsuits against the company. A whistleblower in New Jersey brought the illegal actions of the company to light. The Medicaid system was overcharged because McKesson Corp. and First DataBank Inc. conspired to inflate the perceived acquisition cost of prescription drugs, the acquisition cost is the price medicaid will pay. Only the acquisitions costs for McKesson for the drugs was actually lower. The scheme netted the colluding companies millions of dollars from the years 2001 through 2009. McKesson Corp. does not admit to defrauding Medicaid in several states even though they are settling. The litigation against First DataBank has yet to be settled.

Whistleblower fraud prevention programs are increasing seeing results in recouping defrauded monies from various state and federal health care systems. The whistleblower for the McKesson Corp. case is expected to get around $570,000.

To read the full article from the Indiana Atorney General’s office, click the link: