SALT LAKE CITY — Utah will get $648,000 as part of a multimillion dollar nationwide settlement with Wyeth Pharmaceuticals over allegations of underpaying rebates in a Medicaid drug program.
Wyeth agreed to pay $784.6 million to the government and the states, including $371 million to Medicaid.
Two whistleblower lawsuits claimed Wyeth, now owned by Pfizer, knowingly underpaid rebates owed under the Medicaid Prescription Drug Rebate Program for the sales of Protonix Oral and Protonix IV between 2001 and 2006. The federal government, 35 states and the District of Columbia intervened in the lawsuits.
"We are very proactive in responding to violations committed by large pharmaceutical companies. We value honest industry practices but hold a hard line against fraud," Utah Attorney General Sean Reyes said in a statement.
Congress created the rebate program in 1990 as a cost-containment measure for Medicaid’s payment for outpatient drugs.
— Dennis Romboy
Email: romboy@deseretnews.com
Twitter: dennisromboy