Roxane settles Medicaid fraud suit with Massachusetts

Boehringer Ingelheim Roxane Inc., the Ohio maker of over 200 pharmaceuticals, has settled a False Claims Act suit filed against it in federal district court in Boston. The company has agreed with the Massachusetts Attorney General’s office to pay a sizable settlement to resolve charges that it – along with several other generic drug manufacturers – engaged in falsely inflating the drug prices provided to nationwide price reporting services. The alleged practice resulted in a substantial overcharge to the state Medicaid program (and private medical insurance plans) because the Massachusetts Medicaid system relies on prices published by national drug price reporting services to determine the amount the state program will pay to reimburse pharmacies for drugs prescribed to state Medicaid patients.

In reaching the settlement, Roxane denied any wrongdoing. Four other drug makers have already reached a settlement in the case: Barr Laboratories, Dey Pharmaceuticals, Ethex, and Duramed Pharmaceuticals. Eight defendants remain in the suit.

For the full story, go to the Boston Business Journal.