Public Citizen: State drug fraud cases on the rise

by Matthew Perrone

(AP)—A consumer advocacy group is reporting that pharmaceutical companies have paid more than $30 billion to state and federal governments to settle allegations of fraud over the last 20 years.

The report shows a recent uptick in settlements by state attorneys with drugmakers like and Eli Lilly & Co. The analysis by Public Citizen finds that state governments collected $3.7 billion from drugmakers in the past three years. That was roughly six times more money than in the previous 18 years combined. Overcharging state Medicaid plans was the most common violation.

Governments are spending more on prescription drugs as programs like Medicare and Medicaid swell with aging baby boomers. That increased spending has attracted scrutiny from government investigators looking for potential fraud.

not rated yet
add to favorites email to friend print save as pdf

Related Stories

10 drugmakers team up to improve testing process

Sep 19, 2012

(AP)—Pharmaceutical industry heavyweights are teaming up to address a challenge that's long vexed drugmakers: how to improve the way experimental drugs are tested so they can get approved, and reach patients, faster.

Mississippi sues pharmaceutical company

Jul 25, 2006

Mississippi has filed a legal action against Eli Lilly and Co. alleging a plan to defraud the state of millions of dollars in Medicaid reimbursements.

Mississippi sues pharmaceutical company

Jul 25, 2006

Mississippi has filed a legal action against Eli Lilly and Co. alleging a plan to defraud the state of millions of dollars in Medicaid reimbursements.

Savings help the medicine go down

Jun 25, 2008

[B]Prescription drug coverage for low income seniors reduces Medicaid[/B] A new study of state-subsidized pharmacy assistance programs showed that providing prescription drug coverage for low-income seniors reduces Medicaid and ...

Recommended for you

Study recalculates costs of combination vaccines

Apr 17, 2014

One of the most popular vaccine brands for children may not be the most cost-effective choice. And doctors may be overlooking some cost factors when choosing vaccines, driving the market toward what is actually a more expensive ...

Drug watchdog urges vigilance in cancer drug theft

Apr 17, 2014

Europe's medicine watchdog urged doctors Thursday to be vigilant in administering the cancer drug Herceptin, vials of which had been stolen in Italy and tampered with before being sold back into the supply chain.

User comments