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Mass. gets $9M in Omnicare settlement

By Keith Loria | Sep 23, 2010


BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley announced on Tuesday that she has reached a $9.45 million settlement with a long-term care pharmacy that allegedly overcharged the state Medicaid Program.

Omnicare, Inc., a national long-term care pharmacy headquartered in Covington, Ky., allegedly overcharged MassHealth for prescription drugs supplied to residents of skilled nursing facilities in the state.

"The Massachusetts Medicaid Program provides critical health care services to thousands of Massachusetts residents," Coakley said.

"Our office is focused on rooting out waste and abuse and recovering money on behalf of taxpayers to ensure that companies are not overcharging the state for prescription drug costs."

Omnicare also allegedly failed to follow MassHealth's pharmacy "usual and customary" pricing regulations, which require that pharmacies bill MassHealth at a lower price for any drug that they charge or accept from a private third-party customer.

MassHealth provides funds for health care goods and services for eligible low-income individuals, including senior citizens, children and those with disabilities.

In addition to the $9.45 million payment, the settlement calls for Omnicare to comply with all usual and customary pricing regulations in the future.

The case derived from a whistleblower lawsuit filed in federal court in Chicago on behalf of the United States, Massachusetts and other states.

In the past three years, Coakley's office has recovered more than $165.6 million on behalf of the Commonwealth's Medicaid program.

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