2011 News Releases

Kansas receives $5.8 million in Medicaid recoveries

Release Date: Feb 21, 2011

TOPEKA – (February 21, 2011) – Attorney General Derek Schmidt today announced that Kansas has received more than $5.8 million in recoveries after reaching settlements in four Medicaid fraud cases.

“These recoveries reflect our office’s commitment to protecting taxpayers by fighting waste, fraud and abuse in the Medicaid program,” Schmidt said.

The state recovered $4.25 million for the Medicaid program from GlaxoSmithKline stemming from allegations of improperly inflating the price of their drugs. This settlement was part of an ongoing recovery effort in which pharmaceutical companies allegedly reported artificially high Average Wholesale Prices (AWP). Because Medicaid reimbursement rates are based on the AWP of drugs, the inflated prices caused Medicaid to overpay for the pharmaceuticals. Staff from the Kansas Health Policy Authority assisted the attorney general’s office in investigating these cases.

Additionally, Kansas has recently received settlements from three pharmaceutical companies as a result of nationwide investigations.

Forest Pharmaceuticals has paid Kansas $1,472,634.03 stemming from a federal investigation of off-label marketing and distribution of unapproved drugs. The government alleged that Forest Pharmaceuticals began distributing Levothroid in the early 1990s without first obtaining approval from the Food and Drug Administration. Forrest Pharmaceuticals also allegedly marketed antidepressants Celexa and Lexapro for use in adolescents, while the drugs were only approved for use in adults. The civil settlement distributed between the states and federal government totaled $148 million. Forest Pharmaceuticals also settled related criminal charges.

Drug manufacturer Allergan has paid the Kansas Medicaid program $111,786.54 as part of a $600 million nationwide settlement. This resolves allegations that Allergan promoted the drug Botox for uses not approved by the FDA.

Kos Pharmaceuticals has paid Kansas a total of $52,076.63, allocated to the state and the federal government based on their joint funding of the Medicaid program. The $9 million multi-state agreement settles allegations that the company engaged in kickback violations and off-label marketing of its cholesterol treatment drugs, Advicor and Niaspan.

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News Release Archive

News releases issued prior to 2011 are available through an archive hosted by the Kansas State Library.