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OmniCare Pays $21 Million to Settle Drug Pricing Allegations

September 27, 2010

Omnicare, Inc. has settled lawsuits with the State of Michigan and the Commonwealth of Massachusetts alleging that the company overcharged the States’ Medicaid programs for drugs. In order to participate in the respective Medicaid programs, Omnicare was required to certify that the programs received “most favored customer” status – that it was not selling drugs more cheaply to any other customer.  A whistleblower lawsuit filed in 2004 alleged that, in fact, OmniCare charged Medicaid patients much higher prices than it charged private insureds.

Since 2006, Omnicare has paid nearly $200 million in settlement of various False Claims Act lawsuits related to drug pricing and anti-kickback allegations.  Fraudblawg has previously reported on these settlements here.

To report Medicaid fraud, contact Frohsin & Barger.

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