North Carolina’s public schools received a share of two of the settlements negotiated by the state Department of Justice against AstraZeneca, Omnicare and three other pharmaceutical giants. Kickback violations alleged by investigators ranged from using gifts as an inducement for prescribing certain drugs, to encouraging “off-label” prescribing of drugs not approved to treat various conditions.
“Considering the tight budget condition we find ourselves in, we are pleased to be able to add $3.5 million to the funds available to treat North Carolina’s Medicaid population,” said DHHS Secretary Lanier Cansler. “This is yet another example of North Carolina taking back Medicaid dollars that were improperly paid. We are confident that word is getting out that North Carolina is intolerant of Medicaid fraud and abuse.”
The five settlements totaled nearly $17.5 million. The federal government, which pays around 70 percent of North Carolina Medicaid expenses, received most of the restitution.
The largest settlement was with AstraZenaca for $13.8 million, of which N.C. Medicaid received over $2.4 million in restitution and interest, and the state’s public schools received $2.35 million in penalties. The case involved Seroquel, approved by the federal Food and Drug Administration (FDA) for treating schizophrenia and bipolar depression, but the manufacturer allegedly encouraged its use for other conditions—from Alzheimer’s and other dementia to anxiety and sleeplessness.
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