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Florida Medicaid Fraud Charges Settled by Drug Company

The state of Florida will receive $8.5 million from a settlement with Columbus, Ohio pharmaceutical company, Roxane Laboratories, to partially resolve a Medicaid fraud lawsuit filed in Leon County according to the state attorney general.

The case is still pending against two other defendants, Dey and Warrick Pharmaceuticals.

The settlement comes in response to allegations that Roxane set and reported false, inflated prices for medicines dispensed by pharmacies and others, which were then reimbursed by the Florida Medicaid program. Medicaid sets reimbursement rates based on prices reported by drug companies.

Roxane’s fraudulent actions induced Florida’s Medicaid program to millions of dollars in inflated pharmacy reimbursements.

The whistle-blower that first reported the fraudulent claims was Ven-A-Care of the Florida Keys. The attorney general is currently litigating against six other drug companies for price-reporting fraud.

The settlement money from the Whistle-blower case will be divided with approximately $4.4 million going to the Agency for Health Care Administration (AHCA), which administers the Medicaid program. Over $1.69 million will be put into the state’s general accounts, and approximately $188,000 will be deposited into the legal affairs revolving trust fund, which is used to reward whistle-blowers, people who report and provide information about Medicaid fraud.

Tipsters can call the Hannon Legal Group fraud hot line at (866) 835-6872 to report medicaid or medicare fraud or any other fraud on the State of Florida or on the government of the United States of America.

When the government pays out money for false claims, fraudulent claims or charges which are inflated, all tax payers are hurt. The Florida False Claims Act and the United States False Claims Act allow citizen whistle-blowers to bring a Qui Tam claim on behalf of the state or federal government to recover money they paid out as a result of fraud. These statutes provide a monetary incentive for the whistle-blower by allowing her to keep a portion of the money recovered for the government.

If you know of a business or company that submitted false claims or charges to the either the U.S. or Florida government, call a False Claims Act lawyer today at (866) 835-6872.