Settlement reached in state Medicaid fraud lawsuit - WAOW - Newsline 9, Wausau News, Weather, Sports

Settlement reached in state Medicaid fraud lawsuit

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MADISON (WAOW) -

A California-based drug company has paid Wisconsin nearly $14 million to settle a Medicaid fraud lawsuit, Wisconsin Attorney General J.B. Van Hollen said Tuesday.

The state alleged that McKesson Corp., a drug wholesaler, and First DataBank, a publisher, reported false information and conspired to violate state Medicaid fraud laws by inflating reported drug prices, the attorney general said in a statement.

McKesson has paid the state $13.9 million and First DataBank provided the state nearly $277,000 in credits for its services, Van Hollen said.

“By causing inflated drug prices to be reported and published and concealing that information, McKesson and First DataBank knew that the program would overpay for pharmaceuticals,” Van Hollen said.

Wisconsin Medicaid is a health care program for needy and disabled people and is funded by the state and federal governments.

A spokesperson for McKesson at its corporate headquarters in San Francisco did not immediately return a telephone message.

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