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Zoeller: Indiana to get $6.3 million in drug-maker settlement

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Indiana will receive more than $6.3 million as part of a national Medicaid fraud settlement with drug-maker GlaxoSmithKline, Attorney General Greg Zoeller said in a statement Monday.

The $2 billion national settlement is the largest recovery in a healthcare fraud investigation in U.S. history, according to the AG’s office. The civil settlement stems from allegations that GSK wrongly billed the state’s Medicaid program for ineligible claims and for illegal drug marketing practices brought to light by four whistle-blower lawsuits filed under the False Claims Act.

Zoeller said the settlement “sends a powerful message that state governments and our federal partners will not tolerate overbilling and wrongful billing of Medicaid.”

In addition to the civil settlement, GSK agreed to plead guilty and pay a $1 billion fine to settle federal criminal charges that it violated the federal Food, Drug, and Cosmetic Act. The charges alleged GSK introduced Wellbutrin and Paxil into interstate commerce when the drugs were misbranded, meaning they contained labels not in accordance with their Food and Drug Administration approvals, and that GSK failed to report certain clinical data regarding Avandia to the FDA, the AG’s office said.

The whistle-blower suits that resulted in the civil settlement alleged GSK illegally used “off-label” marketing of its antidepressants Paxil and Wellbutrin, the respiratory drug Advair, the anti-seizure drug Lamictal and the anti-nausea drug Zofran to induce physicians to prescribe them for uses not approved by the FDA, according to the AG’s office.

The suits also alleged GSK offered illegal kickbacks for promoting and prescribing those drugs as well as four other GSK products – Imitrex, Lotronex, Flovent and Valtrex.

The settlement also resolves allegations that GSK failed to comply with federal “best price” requirements for drug reimbursements by underpaying rebates to state Medicaid programs, according to the AG’s office. GSK agreed to pay $300 million in the national settlement, from which Indiana Medicaid will receive $1.22 million.

Money the state recovers through the civil settlement will go back into the Indiana Medicaid program and pay for investigations of other providers. Zoeller said whistle-blowers are entitled to about $245,000 of Indiana’s portion of the recovery and a portion of the national award not yet calculated.

 

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  1. Ah yes... Echoes of 1963 as a ghostly George Wallace makes his stand at the Schoolhouse door. We now know about the stand of personal belief over service to all constituents at the Carter County Clerk door. The results are the same, bigotry unable to follow the directions of the courts and the courts win. Interesting to watch the personal belief take a back seat rather than resign from a perception of local power to make the statement.

  2. An oath of office, does it override the conscience? That is the defense of overall soldier who violates higher laws, isnt it? "I was just following orders" and "I swore an oath of loyalty to der Fuhrer" etc. So this is an interesting case of swearing a false oath and then knowing that it was wrong and doing the right thing. Maybe they should chop her head off too like the "king's good servant-- but God's first" like St Thomas More. ...... We wont hold our breath waiting for the aclu or other "civil liberterians" to come to her defense since they are all arrayed on the gay side, to a man or should I say to a man and womyn?

  3. Perhaps we should also convene a panel of independent anthropological experts to study the issues surrounding this little-known branch of human sacrifice?

  4. I'm going to court the beginning of Oct. 2015 to establish visitation and request my daughters visits while she is in jail. I raised my grandchild for the first two and half years. She was born out of wedlock and the father and his adopted mother wantwd her aborted, they went as far as sueing my daughter for abortion money back 5mo. After my grandchild was born. Now because of depression and drug abuse my daughter lost custody 2 and a half years ago. Everyting went wrong in court when i went for custody my lawyer was thrown out and a replacment could only stay 45 min. The judge would not allow a postponement. So the father won. Now he is aleinating me and my daughter. No matter the amount of time spent getting help for my daughter and her doing better he runs her in the ground to the point of suicide because he wants her to be in a relationship with him. It is a sick game of using my grandchild as a pawn to make my daughter suffer for not wanting to be with him. I became the intervener in the case when my daughter first got into trouble. Because of this they gave me her visitation. Im hoping to get it again there is questions of abuse on his part and I want to make sure my grandchild is doing alright. I really dont understand how the parents have rights to walk in and do whatever they want when the refuse to stand up and raise the child at first . Why should it take two and a half years to decide you want to raise your child.The father used me so he could finish college get a job and stop paying support by getting custody. Support he was paying my daughter that I never saw.

  5. Pence said when he ordered the investigation that Indiana residents should be troubled by the allegations after the video went viral. Planned Parenthood has asked the government s top health scientists at the National Institutes of Health to convene a panel of independent experts to study the issues surrounding the little-known branch of medicine.

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