More than $1 million in settlement money has been recovered by Nassau County thanks to County Executive Edward P. Mangano’s efforts to recoup funds from excessive claims by pharmaceutical companies to the Medicaid program.
The latest $258,561 settlement with defendant Sandoz, Inc. adds to the million dollars plus the County has recouped so far from the multi-district, class action litigation that began in 2007. With 30-40 pharmaceutical companies being sued for overbilling Medicaid charges and negotiations continuing, Nassau County should be the recipient of additional settlement funds.
“Dozens of drug manufacturers cheated our residents out of their tax dollars by defrauding the Medicaid program through bogus drug pricing,” said County Executive Mangano. “I will continue to pursue this matter until every last dollar that belongs to our taxpayers is returned. If you’re cheating the system, get ready, we’re coming for you!”
The City of New York as well as 48 New York State counties filed lawsuits. Although Nassau County originally filed suit separately, claims were consolidated with those of the other counties in New York and will be heard in U.S. District Court of Massachusetts.
The suit alleges that the pharmaceutical drug manufacturers provided false and inflated pricing to Medicaid for prescription drug purchases to secure higher reimbursements. Specifically, the complaint alleges, that the pharmaceutical manufacturers submitted false and inflated pricing information to publishers who report the Average Wholesale Price (AWP) and Federal Upper Limit (FUL) pricing metrics that form the basis of the Medicaid program’s prescription drug expenditures. Damages related to Medicaid reimbursements made on the basis of the inflated AWPs and FULs are being sought.
New York Social Services law requires New York State counties to pay 25% of their Medicaid prescription drug costs. The state pays another 25% and the federal government pays the remaining 50%. New York State’s system is unique in that local taxpayers pay a significant portion of Medicaid costs.