Indiana recovers $1.8M in national settlement with Bristol-Myers Squibb over overcharging

Indianapolis Star - 9/8/2021

Indiana has recovered $1.8 million as part of a national civil settlement stemming from allegations that pharmaceutical giant Bristol-Myers Squibb Co. overcharged state Medicaid programs for medication.

The settlement caps an investigation into Medicaid fraud that was spurred by a whistleblower lawsuit in Pennsylvania federal court from 2013.

The lawsuit claimed that Bristol-Myers Squibb "misreported sales figures and underpaid drug rebates owed to the states," according to the Indiana Attorney General's Office. That activity allegedly occurred between 2007 and 2016.

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"Hoosier taxpayers support the Medicaid program with faith that the funds are used to help provide the health care needs of people truly needing assistance," Indiana Attorney General Todd Rokita said in a statement. "Whenever any company or individual overcharges or otherwise defrauds the program, we must ensure that penalties are imposed and restitution is made."

The national settlement totaled $75 million. Of the $1.8 million recovered by Indiana, nearly $747,000 goes to the state while the rest goes to the federal government, which works with states to administer the Medicaid program.

Bristol-Myers Squibb denies all the claims. As part of the settlement agreement states have agreed to drop any legal action against the company relating to these allegations.

Call IndyStar courts reporter Johnny Magdaleno at 317-273-3188 or email him at jmagdaleno@gannett.com. Follow him on Twitter @IndyStarJohnny