Kentucky will receive $348,975.84 as part of a multistate and federal government lawsuit against Omnicare Inc.
Omnicare is the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes.
The settlement, which totaled $16.48 million to be distributed between all litigants, resolved allegations that Omnicare offered improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to Medicaid recipients.
Attorney General Jack Conway and the state's Medicaid Fraud and Abuse Control Unit represented Kentucky in the suit.
“Pharmaceutical companies that attempt to cheat our state Medicaid program will be caught and held accountable,” Conway said. “My office will not relent in our efforts to protect Kentucky taxpayers and our vital state programs from the sort of misconduct alleged in this case.”
According to the settlement agreement, Omnicare entered into below-cost contracts to supply prescription medication and other pharmaceutical drugs to skilled nursing facilities and their resident patients to persuade the facilities to select Omnicare as their pharmacy provider for nursing home residents covered by Kentucky’s Medicaid program. The government alleges that this conduct violated the federal Anti-Kickback Statute and resulted in the submission of false claims to the Kentucky Medicaid program.