Dey L.P. and Dey Inc. will pay Florida $6.5 million to resolve Medicaid fraud allegations of drug price manipulation.
Allegedly, Dey set and reported inflated prices for Albuterol inhalants, solutions and related products that pharmacies and other providers dispense. The Florida Medicaid program reimbursed these inflated prices which caused them to overpay millions of dollars in pharmacy reimbursements.
The allegations, which constitute violations of the Florida False Claims Act, were filed by whistleblower Ven-A-Care of the Florida Keys, Inc. on behalf of the State of Florida. The Attorney General’s Office investigated the claims and later intervened in the lawsuit.
Of the settlement funds, $3.3 million will go to the State’s General Revenue Fund, $1.3 million will reimburse the Agency for Health Care Administration for overcharges it paid Dey, and $369,999 will go to the Attorney General’s Medicaid Fraud Informant Program to reward people who give information that leads to Medicaid fraud convictions.