Omnicare, Inc, one of the nation’s leading suppliers of pharmaceutical services to the elderly will pay $49.5 million to settle large-scale Medicaid fraud claims. Lawsuits had been filed in U. S. District Court in Chicago by the federal government and two whistle-blowers, who were former employees of Omnicare, charging the company with fraudulent acts. The suit alleged Omnicare provided a more expensive medication to nursing homes when an equally effective generic was available resulting in dramatically increased drug charges to Medicaid. The $49.5 million settlement will be divided between the federal government and 42 states.
Read about the settlement from the U. S. Department of Justice.