Indiana recovers $316K in Medicaid fraud settlement

INDIANAPOLIS — Indiana recovered more than $300,000 after a 14-year battle against a pharmaceutical company accused of taking part in a kickback scheme.

The recovery comes as the U.S. Court of Appeals partially reversed a dismissal of litigation against PharMerica. Under the ruling, Indiana received $316,241 of a $4.9 million resolution.

“This case demonstrates the vital role of persistence in the American legal system,” Attorney General Rokita said. “When companies betray the trust placed in them by Medicaid patients and their doctors, justice demands that the companies be held accountable, no matter how long it takes.”

PharMerica Inc. was part of a 14-year-long litigation under the federal False Claims Act and other state laws in Indiana and 10 other states. The case started in 2007 when James Banigan and Richard Templin filed a lawsuit against Organon Inc., Omnicare Inc. and PharMerica Inc.

The case alleged that Organon schemed with PharMerica and Omnicare for kickbacks to incentivize the pharmacies to switch medications prescribed by patients’ physicians to those sold by Organon. This includes the antidepressants Remeron Tablet and Remeron SolTab.

Organon settled in August 2014, with Indiana Medicaid recovering $219,000. Omnicare settled in May 2017, with Indiana Medicaid recovering $1,330,572. In total, Indiana Medicaid has recovered $1,865,813 in this case.

Source: Indiana recovers $316K in Medicaid fraud settlement / FOX 59

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