Posted: Nov 1, 2010 2:38 PM by Russell Jones
Source: Office of the Louisiana Attorney General
BATON ROUGE - Louisiana’s attorney general has filed a lawsuit in Baton Rouge claiming drug companies milked millions of dollars from the state’s Medicaid program by lying about drug prices.
18 companies are named in the lawsuit filed by Attorney General Buddy Caldwell in district court Thursday. Caldwell alleges in the suit that the companies deliberately reported inflated drug prices to increase their Medicaid reimbursements.
“We believe Louisiana has lost hundreds of millions of dollars as a result of these drug companies’ fraudulent pricing schemes,” Caldwell said in a press release.
According to the lawsuit the Louisiana Medicaid Program spent over $850 million for pharmaceutical drugs between 1991 through 2009. The lawsuit claims that the price for a drug paid by the state was often much higher than the true price, sometimes by as much as 30 to 6000 percent.
The suit seeks recovery of all overpayments with interest as well as damages, fines, penalties, costs and attorney fees.
Caldwell said that the federal government and 27 other states have brought similar lawsuits that have resulted in multiple million-dollar verdicts and settlements.