The state is getting nearly 900-thousand dollars in a nationwide Medicaid fraud settlement with a large drug company. David Werning of the Iowa Department of Inspections and Appeals says the case against the Bayer Corporation was accused of defrauding the Medicaid drug rebate program.He says drug manufacturers are supposed to provide the government with a base price list for their drugs. He says Bayer Corporation gave discounts to H-M-O’s that they did not report to the federal government. Werning says the Iowa settlement money will go back into the system.About half will be in the form of reimbursement to the state Medicaid program, while the rest is interest and money that’ll be used for ongoing investigations in the program. Werning says this type of case hadn’t been all that common. He says it has been happening more often recently, and says just last month a case was settled with Glaxo-Smith-Kline in the same type of scheme. Werning says all fifty states and the District of Columbia were part of the settlement.
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