For Immediate Release
Media Contact: Bob Cooper
(208) 334-4112

Date: December 12, 2007

Idaho Recovers $13,000 for Improper Prescriptions for Medicaid Patients

(Boise) – Idaho has recovered $13,253 in a legal settlement with Medicis Pharmaceutical Corporation, Attorney General Lawrence Wasden said today. The settlement funds will compensate Idaho for expenses incurred by the state’s Medicaid program as a result of Medicis’ alleged promotion of unapproved use of the prescription drug Loprox. The settlement was negotiated by the National Association of Medicaid Fraud Control Units and the U.S. Department of Justice.

The settlement resolves state Medicaid claims that Medicis knowingly and willfully promoted the sale and use of Loprox for diaper dermatitis and other skin disorders in children under the age of 10. The U. S. Food & Drug Administration (FDA) has not approved Loprox for those uses. Medicis also entered into a separate settlement with the U. S. Department of Justice.

Under terms of the $9.8 million settlement, participating states will receive $4 million to compensate Medicaid programs.

$4,525 of Idaho’s share will be paid to Idaho’s General Fund for appropriation by the Legislature. The balance will go to the federal government to reimburse its share of the Medicaid costs. The federal government pays for approximately 70% of state Medicaid costs.

Medicis will also enter into an agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services for monitoring the company’s operations and to ensure future compliance with all laws and regulations.

The Idaho Legislature created the Medicaid Fraud Control Unit in 2007 to investigate and prosecute fraud committed by Medicaid providers. To report Medicaid provider fraud, contact the Idaho Medicaid Fraud Control Unit at (208) 334–4100 or, by e–mail, at mfcu@ag.idaho.gov. To report fraud by Medicaid recipients, contact the Idaho Department of Health and Welfare.

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