IG Points Finger At Medicaid Prescription Drug Program Oversight

The Health and Human Services Inspector General report found that not one of 14 states recently audited have adequate controls in place.

The Hill: Inspector General Report Faults Oversight Of Medicaid Prescription Drug Program
Not one of 14 states recently audited had adequate controls in place to ensure that all of its Medicaid drug expenditures complied with federal law, according to a new Health and Human Services Office of Inspector General report. The potential cost to state and federal taxpayers: almost $260 million. The report found many drugs were ineligible for coverage, and faulted the federal Centers for Medicare and Medicaid Services (CMS) (Pecquet, 10/24).

In other news, Amgen takes steps toward a legal settlement which will resolve state Medicaid investigations and 10 whistle-blower lawsuits.

The New York Times: Amgen To Pay $780 Million To Settle Suits On Its Sales
Amgen said Monday that it had set aside $780 million to settle various federal and state investigations and whistle-blower lawsuits accusing it of illegal sales and marketing tactics. … The company said a settlement, which it expected to be concluded in three to four months, would also resolve state Medicaid investigations and 10 whistle-blower lawsuits. It is not clear if the company will plead guilty to any criminal charges (Pollack, 10/24).

Bloomberg: Amgen Says It Set Aside $780 Million To Settle Drug Sale Kickback Claims
Amgen Inc. (AMGN) said it set aside $780 million to resolve civil and criminal investigations into whether the world's largest biotechnology company engaged in improper sales of drugs, including its Aranesp anemia medicine. Amgen said in a release yesterday it took a $780 million charge to cover the costs of settling federal and state probes of its sales and marketing practices. Amgen said it expects the accord to resolve 10 whistle-blower lawsuits, including one claiming fraudulent overbilling tied to Aranesp sales. "The proposed settlement remains subject to continuing discussions regarding the components of the agreement," officials of Thousand Oaks, California-based Amgen said in the release (Feeley and Voreacos, 10/25).