Idaho To Receive $85K In Medicaid Fraud Settlement

April 26, 2012

Idaho will receive about $85,000 from two separate Medicaid fraud settlements with prescription drug manufacturers.

State Attorney General Lawrence Wasden said Tuesday that a settlement with KV Pharmaceutical will net the state $64,500, and a separate resolution with Dava Pharmaceuticals Inc. will pay Idaho $20,000.

KV Pharmaceutical resolves allegations that a subsidiary company failed to report to the federal government that two of its products didn’t qualify for Medicaid coverage, submitting false quarterly reports in the process.

Idaho joins several other states in settling allegations that Dava Pharmaceuticals Inc. underpaid the Medicaid Prescription Drug Rebate Program from 2005 to 2009.

Dava is accused of misrepresenting drugs as generic instead of branded to lower its legally required Medicaid rebate payments.

Idaho Medicaid will receive $76,000 of the settlement funds.

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