Pharmaceutical companies Pfizer and Wyeth have agreed to pay $784.6 million to resolve allegations of underpaying rebates to Medicaid.
An April 27 release from the U.S. Department of Justice announced the settlement, which resolves claims that Wyeth, prior to being acquired by Pfizer in 2009, knowingly reported false and fraudulent prices on two antacid drugs.
“This settlement demonstrates our unwavering commitment to hold pharmaceutical companies responsible for pursuing pricing schemes that attempt to manipulate and overcharge federal health care programs–programs that protect the poor and disabled–for drugs sold to commercial customers at much lower prices,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer.
The Justice Department said Wyeth offered hospitals the antacid drugs at a deep discount to encourage their use. The pharmaceutical company then hid the discounts from the federal health insurance program.
Terms of the settlement include Pfizer and Wyeth paying $413.2 million to federal and $371.4 to state Medicaid programs.
Nicholas joined TriMed in 2016 as the managing editor of the Chicago office. After receiving his master’s from Roosevelt University, he worked in various writing/editing roles for magazines ranging in topic from billiards to metallurgy. Currently on Chicago’s north side, Nicholas keeps busy by running, reading and talking to his two cats.