Bristol-Myers Squibb Settles MDRP Underpayment Claim For $75 Million

Rivkin Radler LLP
Contact

Rivkin Radler LLP

The U.S. Department of Justice recently announced that Bristol-Myers Squibb (BMS) agreed to pay $75 million, plus interest, to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program (MDRP). Of that total, $41 million plus interest will be paid to the federal government and the remainder to various state Medicaid programs.

Under the MDRP, drug manufacturers that wish to make their drugs available to Medicaid beneficiaries must pay quarterly rebates to state Medicaid programs. Rebate amounts are based in part on the Average Manufacturer Price (AMP) of each drug. The settlement resolves allegations, made by a whistleblower in a lawsuit filed in 2018 under the False Claims Act, that BMS underreported AMPs in order to pay lower quarterly rebates.

Unusually, the plaintiff continued to pursue the case and was able to secure a settlement even though the federal government declined to intervene in the action brought on its behalf.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Rivkin Radler LLP | Attorney Advertising

Written by:

Rivkin Radler LLP
Contact
more
less

Rivkin Radler LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.