In October 2009, Mylan Pharmaceuticals Inc. (“MPI”), UDL Laboratories, Inc. (UDL), AstraZeneca Pharmaceuticals LP, and Ortho McNeil Pharmaceutical Inc. paid a total of $124 million to resolve FCA allegations that they underpaid their rebate obligations with respect to certain of their drugs. By agreeing to participate in the Medicaid Rebate Program and signing these Rebate Agreements, these companies agreed to pay quarterly rebates to Medicaid that were based upon the amount of money that Medicaid paid for each company’s drugs. The precise amount of a rebate is determined in part by whether a drug is considered an “innovator” drug or a “non-innovator” drug. The rebate that must be paid for innovator drugs is higher than the rebate for non-innovator drugs. The government alleged that these companies misclassified their drugs as “non-innovator” to reduce their rebate obligations to Medicaid
Source: HHS Health Care Fraud and Abuse Control Program, Annual Report for FY 2010
This article was posted on July 15, 2012
