Texas Attorney General Greg Abbott Announces Medicaid Fraud Recovery from Pfizer, Endo
Texas’ Attorney General has recovered a sizable amount of money for the state taken in Medicaid fraud.
Texas Attorney General Greg Abbott announced Friday that two civil Medicaid fraud settlements will yield more than $36 million for the State.
Under the settlement agreements, the State of Texas will recover $18.17 million each from Pfizer and Endo Pharmaceuticals.
The $36.34 million recovery is in addition to attorney fees and relator shares that will also be assessed. Since Medicaid is jointly funded by the State and the federal government, the federal government is entitled to a share of the total monetary settlement.
Pfizer and Endo were charged with defrauding the Medicaid program in previously sealed cases. The State’s enforcement actions cited both defendants for misreporting the price of various generic drugs to the Medicaid program, and the taxpayer-funded program was overcharged.
Drug manufacturers are required to file reports with the Medicaid program that disclose the prices they charge pharmacies, wholesalers, and distributors for their products. When inflated market prices are reported improperly, Medicaid reimburses pharmacies at vastly inflated rates.