It's not just branded drugmakers who are being targeted for Medicaid fraud. The Texas Attorney General is going after four generics makers for allegedly stating falsely inflated prices for their medications. Watson Pharmaceutcials, Alpharma, Par Pharmaceutical and Barr Pharmaceuticals listed artificially high prices all the way back to the 1990s, the AG claims. Medicaid then reimbursed pharmacies at those inflated prices, giving the pharmacies windfall profits--and "unlawfully" inducing them and other customers to buy more from the drugmakers.
The probe's roots lie in a whistleblower lawsuit that's under court seal. That suit has led to action against several drugmakers for similar pricing schemes, including Schering-Plough, Boehringer Ingelheim, and Baxter Healthcare.
- see the AG's press release
- read the Pharmalot item