Multi-state settlement with BioScrip unveiled

By Bryan Cohen | Dec 20, 2012

WASHINGTON, DC (Legal Newsline) - A multi-state group of attorneys general announced a $5 million multi-state settlement Wednesday with BioScrip Inc. to resolve allegations of overbilling government healthcare programs.

Forty states, the District of Columbia and the federal government took part in the settlement with BioScrip, which allegedly billed Medicaid and other government health care programs for prescription medications as if the government programs were primary insurance carriers even though the patients had other insurance coverage.

"The deterrent effect here is as important as recovering taxpayer dollars," Maryland Attorney General Douglas Gansler said. "If a company seeks undue profits from Maryland taxpayers, we're coming after you."

The inquiry into BioScrip began when a qui tam action was filed in the U.S. District Court for the District of Minnesota under several state false claim statutes and the federal False Claims Act. The payment will provide penalties and restitution to the federal government and state governments for the allegedly false Medicaid claims.

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