Va. to get $37m in Medicaid Fraud Settlement

Oct. 18, 2013

Virginia is receiving $37 million as part of a settlement with one of the largest pharmaceutical wholesalers.

Attorney General Ken Cuccinelli announced the agreement with McKesson Corp. on Friday.

Cuccinelli's office alleged that McKesson violated the Virginia Fraud Against Taxpayers Act by conspiring to inflate prices for more than 400 brand-named prescription drugs. That caused Virginia's Medicaid program to overpay for those drugs based on published price information.

"Virginia will go its own way to make sure that we won't tolerate medicaid fraud in Virginia," said Atty. Gen. Cuccinelli. "It robs the taxpayers, and it doesn't just rob the taxpayers, it robs Virginia of money set aside to serve our poor as it related to health care."

The settlement will return more than $30 million to Virginia's General Fund Health Care account for both damages and penalties. The remaining amount is for other costs and fees.


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