Drug wholesaler pays state $14M in fraud settlement

By: Associated Press//November 5, 2013//

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MADISON, Wis. (AP) – A drug wholesaler has agreed to pay Wisconsin nearly $14 million to settle allegations of Medicaid fraud.

The state attorney general’s office announced the settlement Tuesday with McKesson Corp. The settlement also includes another $277,000 from First DataBank Inc. for its alleged role in fraud.

The Wisconsin Justice Department accused McKesson of reporting inflated prices for pharmaceutical drugs to First DataBank. The agency says First DataBank then published the false information, causing Wisconsin’s Medicaid program to overpay for the drugs it purchased.

Messages left with McKesson and First DataBank were not immediately returned.

As part of the settlement McKesson reimbursed the state $11.6 million, plus paid another $2.3 million in attorneys’ fees.

The settlement is separate from another lawsuit asserting similar claims against dozens of drug makers.

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