Processing Magazine

States claim payout in Bristol-Myers settlement

July 16, 2008

According to the Associated Press, several states expect multimillion-dollar payouts from drug developer Bristol-Myers Squibb Co. as part of a settlement of allegations of Medicaid fraud and illegal drug marketing practices.The payouts are part of an overall $515 million settlement announced in September, according to Bristol-Myers. The states and Department of Justice accused the New York-based drug developer of inflating prescription drug prices to get more money out of Medicaid programs, illegally paying physicians and health care providers to use its products, and promoting the unapproved use of the anti-psychotic drug Abilify. The September settlement involved the Department of Justice and the National Association of Medicaid Fraud Units, which represents the states interests in the program. Under the September settlement, Bristol-Myers does not face any criminal charges.