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Beshear: Kentucky Medicaid Program to Receive $67,000 to Settle Civil Allegations against Omnicare

Kentucky Attorney General

Attorney General Andy Beshear announced today that Kentucky’s Medicaid program will receive nearly $67,000 from a multistate settlement with Cincinnati-based Omnicare Inc. to settle civil allegations.

The national settlement alleges Omnicare, which provides pharmacy-related services, conspired with Abbott Laboratories through a number of disguised financial arrangements to increase overall utilization of Abbott’s drug Depakote that is used to treat seizure disorders.

General Beshear’s Medicaid Fraud and Abuse Unit headed Kentucky’s efforts in this settlement. Kentucky’s settlement amount was prorated among the other states and the federal government based on utilization. Kentucky’s utilization of Depakote was low; therefore, Medicaid expenditures were low for the drug.

“I take my role as Medicaid watchdog seriously,” Beshear said. “Medicaid is an important program that serves our citizens in many different capacities. My office will hold accountable anyone who seeks to abuse it for personal gain.”

The settlement alleges that from Jan. 1, 2001, through Dec. 31, 2008, Omnicare, which was acquired by CVS Health Corporation last year, knowingly solicited and received illegal compensation from drug manufacturer Abbott in the form of agreements that required Omnicare to engage in certain promotional programs, grants and other financial support to increase the utilization of Abbott’s drug Depakote. 

This alleged conduct resulted in false claims to Medicaid and other federal health care programs, Beshear said.

Since January, Beshear has returned $8.5 million to the state’s Medicaid program. To report Medicaid provider fraud, call 800-ABUSE-TIP or 800-228-7384.

Story provided by (Kentucky Attorney General)