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State receives money from drug testing company settlement

State receives money from drug testing company settlement

(Prescription Drugs) Permanent link

Our Medicaid Fraud Control Unit (MFCU) has announced a new settlement agreement.  This one involves allegations against Ameritox, which makes drug testing products.

Several states and the federal government say Ameritox provided kickbacks to doctors for both necessary and unnecessary drug tests from January 1, 2003 through June 30, 2010.The National Association of Medicaid Fraud Control Units joined the federal government to reach an agreement in principle with the company.

Our state’s portion of the recovery is $28,863. Of that amount, our Medicaid program will receive $4,224 and the general fund will receive $10,272.  The rest is returned to the federal government for its share of Medicaid spending in Washington state on Ameritox products during the time in question.

Ameritox will pay the states and the federal government $16.3 million in civil damages and penalties for Medicaid and other federally-funded health care programs.  Medicaid programs nationwide will receive approximately $814,000 of the total settlement. State settlement amounts are calculated based on how much was improperly spent on products within a set time period.

So far this calendar year, MCFU has recovered $24,806,933 through legal action against drug companies. For more detail on Medicaid recoveries, including information about how recoveries are tabulated for the state’s fiscal year, we’ve posted detailed information.

-Dan Sytman-

Posted by Public Affairs Unit at 11/30/2010 02:14:39 PM | 

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