Final payment made in La. drug suit
BATON ROUGE - The state Attorney General's Office announced today they received the final settlement payment in a three-year lawsuit against pharmaceutical companies which illegally hiked drug prices paid through the state Medicaid program.
AG Buddy Caldwell's office said the $88.4 million payment raises the total recovered by the suit's settlement to more then $238 million dollars in stolen Medicaid funds.
"This kind of success sends a clear message to companies that don't do business honestly," Caldwell said in a press release. "Louisiana is a pro-business state. If you play fair, come to Louisiana and do business on a level playing field. And if you don't, stay away or suffer the consequences."
The suit was filed in 2010 against 109 drug manufacturers, accusing them of misreporting drug price information in order to improperly increase reimbursements paid by Louisiana's Medicaid program.
"In order to provide critical services to Louisiana citizens, those who work with our Medicaid program must be responsible actors - pharmaceutical companies are no exception," said Secretary Kathy Kliebert of the Department of Health and Hospitals.
Most of the funds must be turned back to the federal government, because Medicaid costs are shared between them and the state.