Indiana will receive $9 million as a result of a settlement reached with drug producer Wyeth, which allegedly cheated multiple states’ Medicaid out of the money when it didn’t offer them federally-mandated rebates on specific drugs.
Indiana, along with 34 other states and the federal government, are sharing a nearly $800 million settlement with the company. Bryan Corbin of the Indiana Attorney General’s Office says drug companies such as Wyeth are required to give Medicaid programs certain rebates in order to save programs tax dollars.
"They were not giving the states the best price, they were not giving the state a discounted price," he says.
Because Medicaid is covered by both state and federal dollars, the total combined amount Indiana receives is over $25 million, including federal money.
The drugs involved are medications called protein pump inhibitors, which treat stomach acid problems.
Corbin says only the government lost money from the scheme, not individual patients. The settlement money will go back into the state’s Medicaid coffers.
Wyeth was bought by drug giant Pfizer in 2009, after the alleged defrauding occurred.
Corbin says the state handles Medicaid lawsuits like this all the time, but the size of the settlement makes the Wyeth case unique.