Drug co. to pay $9M to MassHealth

http://www.bostonherald.com/business/healthcare/2015/10/drug_co_to_pay_9m_to_masshealth

Drug co. to pay $9M to MassHealth
Thursday, October 8, 2015
Herald Staff

The Bay State’s Medicaid program, MassHealth, is expected to receive $350,000 after a Kentucky pharmacy agreed to pay $9.25 million to settle allegations that it solicited and received kickbacks from a manufacturer in exchange for promoting a drug to nursing home patients, authorities said.

The settlement with 
Louisville-based PharMerica Corp. resolves claims that it received kickbacks from Abbott Laboratories in exchange for recommending that doctors prescribe the Abbott-manufactured drug Depakote for off-label uses not approved by the Food and Drug Administration.

The settlement partially resolves allegations in two whistleblower lawsuits filed in federal court in the western district of Virginia.

“Soliciting illegal kickbacks to promote off-label drug use creates improper incentives that undermine the integrity of our health
care system,” said Attorney General Maura Healey, who joined with other states and the federal government in the settlement. “Our office is committed to ensuring that companies adhere to industry standards and taxpayer money is spent to improve patient care.”