NEW YORK (AP) -- Omnicare Inc., which dispenses drugs to nursing homes and long-term care facilities, says it will pay $21.1 million to settle a whistleblower lawsuit.
The company will pay $11.6 million to Michigan and $9.5 million to Massachusetts. The states alleged Omnicare defrauded Medicaid programs by overcharging the agency for drugs.
Michigan Attorney General Mike Cox says that under state law, pharmacies cannot charge Medicaid higher rates than they charge private health insurers.
Omnicare denies the allegations and isn't acknowledging any liability.
The Covington, Ky., company also is paying $385,000 to David Kammerer, who filed the initial lawsuit against Omnicare in August 2003. Those payments covered his expenses and attorney's fees.
Omnicare disclosed the settlement in a form filed Tuesday with the Securities and Exchange Commission.
Published: Fri, Sep 24, 2010
