Drug Bust! Schneiderman Settles Pharma-Fraud Suit

Attorney General Eric Schneiderman is touting another clawback of taxpayer dollars today.

In a press release, Schneiderman announced a $2.5 million dollar settlement in a case against Pharmacia Corporation, with the recovered funds going to Medicaid and the Elderly Pharmaceutical Insurance Coverage Program.

Schneiderman accused Pharmacia Corporation of inflating the costs of drugs that were sold to state health programs. New York Medicaid, EPIC, and other health plans based their reimbursement rates on these inflated prices and ended up paying more money for some drugs than they should have.

The new attorney general has been aggressively targeting medical fraud, and in the past two months has recovered $1.6 million in a settlement with three different Medicaid providers, and $18 million in damages from the Young Adult Institute, Inc., which also promised to make reforms in their services.

Since coming to office, ­­­­­Schneiderman has launched the Taxpayer Protection Unit, a group that will “target corrupt contractors, pension con-artists, and large-scale tax cheats who rip-off New York State government and its taxpayers.” The TPU is an add-on to the Medicaid Fraud Control Unit, which had already investigated fraud under then-Attorney General Andrew Cuomo.

“New York’s taxpayers will no longer foot the bill when contractors inflate their prices to make an extra buck,” said Schneiderman. “These are hard financial times for our state, and my office will do its part by uncovering every dishonestly claimed dollar, and holding those who take advantage of New York accountable.”

Drug Bust! Schneiderman Settles Pharma-Fraud Suit