July 26, 2005

Florida Sues for Medicaid Fraud

Florida is attempting to keep control of its medications costs with a lawsuit aimed at three pharmaceuticals companies that the Florida government says overcharged the goverment.

"The Florida attorney general has filed a civil complaint against three of the industry's largest generic drugmakers, accusing the firms of defrauding the state's Medicaid program of $25 million. Florida Attorney General Charlie Crist contends the drug manufacturers -- Mylan Pharmaceuticals, Teva Pharmaceutical and Watson Pharmaceuticals -- wrongfully inflated prices in a way that enabled pharmacies to receive excessive reimbursement for filling prescriptions for Medicaid patients who bought generic drugs for depression, schizophrenia, seizures, angina and other serious illnesses. Crist outlined the allegations in a lawsuit filed July 20 in the state's 2nd Judicial Court in Leon County" (Washington Business Information-FDA News).

This lawsuit is being filed due to an investigation done by Crist's Medicaid Fraud Control Unit. Some generic companies were giving "inflated average-wholesale prices" to Florida's Medicaid program. This information is used to determine the reimbursements that should be given to the drug companies. By doing this they would be able to receive a larger profit than they should be taking in. The pricing abuses date back to 1994.

To view a copy of the latest lawsuit, go to: http://myfloridalegal.com/webfiles.nsf/WF/MRAY-6EFRYC/

The source of this article is Washington Business Information, Inc., FDAnews Drug Daily Bulletin.

To view more stories on Medicaid and the struggle for affordable healthcare go to: http://tinyurl.com/bzt62


I printed a copy of the complaint (thanks for including the link), but we've called the court and they've indicated that the lawsuit has been transferred to federal court. Do you have any updated information on this?

Posted by: Leslie lMarinaccio at July 28, 2005 01:12 PM

When we are talking about biomedical research and pharmaceuticals companies in fact, we are talking about a lot of money. It has been known an explosive growth of pharmaceutical industry in the latest years. In general, the generic drugs for seriously diseases are very expensive. I do not think that the prices were inflated wrongfully.

Posted by: Foggerty at August 18, 2006 04:36 AM

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