Aventis Pays Up For Defrauding Utah’s Medicaid Program

February 12, 2008 -- Aventis Pharmaceuticals, Inc. has agreed to pay $22.7 million plus interest to settle claims that it defrauded state Medicaid programs by illegally inflating drug prices. Attorney General Mark Shurtleff announced today that the Utah Medicaid Program has received a check for $66,955 from the settlement. The remaining money is being split between the federal government, District of Columbia and 37 other states.

“The state of Utah is aggressively pursuing drug manufacturers who falsify or inflate their ‘average wholesale prices’ in order to cause the Medicaid system to pay more for drugs,” says Assistant Attorney General, Robert Steed, Director of the Utah Medicaid Fraud Control Unit.

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After being notified by a whistleblower, the U.S. Department of Justice and National Association of Medicaid Fraud Control Units began an investigation into the way Aventis was pricing and marketing Anzemet. The drug Anzemet is used in oncology and radiation treatment to prevent nausea and vomiting.

From September 1, 1997 through June 30, 2004, Aventis allegedly told pharmacies, doctors and hospitals to charge Medicaid a higher amount for Anzemet than what was actually paid. The scheme allowed the pharmaceutical company to increase its market share and enabled healthcare providers to increase their profits.

In addition to the financial settlement, Aventis has entered into an agreement to comply with federal price reporting requirements. The Utah Attorney General’s Office oversees the Medicaid Fraud Unit to protect the integrity of Utah’s Medicaid program. The public can learn more about Medicaid fraud or report abuse at www.medicaidfraud.utah.gov or call (800) 244-4636.

Source: Utah Attorney General