Texas Attorney General Ken Paxton secured a settlement with AstraZeneca Pharmaceuticals to resolve claims that the company engaged in an illegal kickback scheme that improperly influenced prescriptions paid for by Texas Medicaid.
“I will not allow Big Pharma to misuse taxpayer dollars to put profit ahead of Texans’ health,” said Paxton. “My office will continue aggressively pursuing healthcare fraud to protect taxpayer dollars and the integrity of our healthcare system.”
Under the settlement, the company will pay $33,998,000 to the state, according to the Office of the Attorney General.
Paxton sued AstraZeneca under the Texas Health Care Program Fraud Prevention Act. The state’s lawsuit alleged that AstraZeneca provided free nursing services and reimbursement support to prescribers and paid third-parties to deploy nurses and other healthcare professionals to recommend AstraZeneca drugs to medical providers under the guise of non-branded counseling.
The OAG says the inducements were designed to steer providers toward prescribing AstraZeneca’s drugs. In many cases, the prescriptions were covered by Medicaid, resulting in millions of dollars in claims to Texas Medicaid that were tainted by AstraZeneca’s illegal inducements.
Now, under the settlement, AstraZeneca will pay $33.9 million to resolve the state’s claims and repay Texans for the abuse of taxpayer dollars.
“As a result of a mutual desire to settle their disputes amicably and to avoid the delay, expense, litigation costs, inconvenience, and uncertainty of protracted litigation, the PARTIES have reached a full and final settlement of the PLAINTIFFS’ claims, and any potential claims arising from the COVERED CONDUCT, as set forth and defined in this AGREEMENT,” the settlement states.
The settlement builds upon the attorney general’s ongoing efforts to combat Medicaid fraud and protect Texas taxpayers. The OAG has also taken legal action against Eli Lilly, Sanofi-Aventis, and other major pharmaceutical companies to hold drug manufacturers accountable for fraud and abuse.
