Leading US pharmacy settles $50M Medicaid fraud case

A leading US pharmacy chain has agreed to pay out $49.5 million in settlement of a major Medicaid fraud claim, according to the US Attorney's office. Two whistleblowers who were former employees of the accused firm, Covington, Kentucky-based Omnicare, shared more than $7.2 million.

The plaintiffs claimed that Omnicare supplied ranitidine capsules costing $79.80 to elderly Medicaid patients, instead of the equivalent dose in tablet form, which cost $17.10. Other drugs which were allegedly switched in this way were fluoxetine and buspirone.

In a statement, Omnicare said that it had "cooperated fully" and was "pleased that the matter is now closed." The firm added that it had not admitted to any wrongdoing, but had settled the case "to avoid expensive and time-consuming litigation."