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

Date: July 6, 2010

Attorney General Recovers More Than $100,000 in Medicaid Fraud Settlement

(Boise) - The State of Idaho has received $106,648.90 from a legal settlement with pharmaceutical manufacturer, Alpharma Inc., Attorney General Lawrence Wasden said.

The multi-state federal settlement resolves allegations that Alpharma caused false or fraudulent claims for the prescription drug Kadian to be submitted to the Medicaid program. Kadian is a sustained release morphine sulfate product indicated for the management of moderate to severe pain.

The restitution payment of $51,599.72 will go to the Idaho Department of Health and Welfare, Division of Medicaid to reimburse the department for improper claims. The additional recoveries of $55,049.18 will go to the state’s general fund and will be available for appropriation by the Idaho Legislature. Medicaid is funded jointly by the federal and state governments.

Idaho alleged that between January 1, 2000 and December 29, 2008, Alpharma offered and paid for training programs, consulting forums, research grants, speakers’ bureaus and made or disseminated false statements about the safety and efficacy of Kadian, all of which was done to induce health care providers to prescribe Kadian.

The investigation was initiated by a lawsuit filed under the Federal False Claims Act. The lawsuit is pending in the United States District Court for the District of Maryland.

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