FRANKFORT, Ky. (WHAS11) – Kentucky’s Medicaid program will receive nearly $67,000 from a multi-state settlement with Omnicare Inc, based out of Cincinnati, to settle civil allegations.
The settlement claims Ominicare, which provides pharmacy related services, conspired with Abbott Laboratories by way of masked financial measures to increase overall utilization of Abbott’s drug Depakote. It is used to treat seizure disorders.
Kentucky’s settlement amount was prorated among the other states and the federal government based on utilization. The utilization of Depakote in Kentucky was low and so Medicaid expenditures were low.
“I take my role as Medicaid watchdog seriously,” Attorney General Andy 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 claims from Jan. 1, 2001, through Dec. 31, 2008, Omnicare knowingly solicited and received illegal compensation from drug manufacturer Abbott. The compensation came in the form of agreements that required Omnicare to engage in certain promotional programs, grants and other financial support to increase the utilization of Depakote.
Beshear says the alleged conduct resulted in false claims to Medicaid and other federal health care programs.
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.