Sanofi-Aventis will pay almost $100M to settle Medicaid pricing charges

Drugmaker Sanofi-Aventis has agreed to pay $95.5 million to settle False Claims Act charges that corporate predecessor companies cheated the Medicaid program. Under the terms of the settlement, Sanofi-Aventis will pay $55.5 million to the federal government, along with $40 million to the states.

The Department of Justice had charged that a company which eventually became part of Sanofi-Aventis--Rhone-Poulenc Rorer Pharmaceuticals--misreported drug prices in order to pass less money back to the states under the Medicaid drug-rebate program.

Specifically, the DoJ contends that the companies deceived the states on "best" pricing for branded nasal sprays by selling them at lower prices to Kaiser Permanente Medical Care Program and Kaiser-affiliated Group Health Cooperative under a private label. Ordinarily, pharmaceutical manufacturers are supposed to rebate the states back the difference between what they paid and any lower price another buyer paid.

To learn more about the case:
- read this Modern Healthcare piece (reg. req.)

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