Delaware News

Delaware Acts to protect patients and taxpayers

Department of Justice | Department of Justice Press Releases | Fraud | Date Posted: Thursday, May 21, 2009



The Delaware Attorney General’s office today announced it has reached a
settlement with the pharmacy company Omnicare, Inc. (“Omnicare”) to resolves allegations that the
company violated state and federal law by switching the dosage strengths and forms of certain
medications used by Medicaid patients. As a result of this settlement, Omnicare will pay $38,182 to
the Delaware Medicaid program and will pay a $76,365 penalty to the state’s General Fund.
“We are holding this company accountable for overcharging the Medicaid program as a result
of drug switches that it initiated,” said Timothy Mullaney, Director of the Attorney General’s Fraud
and Consumer Protection Division. “The Attorney General’s Office will continue to stand up for
taxpayers by identifying and weeding out Medicaid fraud.”

From April 1, 2000 through December 31, 2005 Omnicare used a “therapeutic interchange
program” to aggressively switch patients from brand-name drugs to generic drugs and also switched
various forms and strengths of drugs. One stated purpose of the therapeutic interchange program was
to lower costs for third-party payers, including Medicaid. However, the Attorney General’s Medicaid
Fraud Control Unit investigation revealed that as a result of some of these switches the Delaware
Medicaid program actually paid more for certain drugs. Specific examples include patient switches by
Omnicare:

? from 150 mg and 300 mg ranitidine (generic Zantac) tablets to the equivalent capsules, which
caused Medicaid to pay a higher price.
? from 10 mg and 20 mg fluoxetine (generic Prozac) capsules to the equivalent tablets, which
caused Medicaid to pay a higher price.
? from 15 mg buspirone (generic Buspar) dosage strength to 7.5 mg dosages, which caused
Medicaid to pay a higher price.

Two whistleblowers contributed to the discovery of these violations by Omnicare. This case
was prosecuted by Deputy Attorney General Daniel Miller, Director of the Attorney General’s
Medicaid Fraud Control Unit. The Attorney General’s office encourages anyone who may know of
possible Medicaid Fraud to call and report it to the Delaware Medicaid Fraud Control Hotline at
(302)577-5000.
# # #

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Delaware Acts to protect patients and taxpayers

Department of Justice | Department of Justice Press Releases | Fraud | Date Posted: Thursday, May 21, 2009



The Delaware Attorney General’s office today announced it has reached a
settlement with the pharmacy company Omnicare, Inc. (“Omnicare”) to resolves allegations that the
company violated state and federal law by switching the dosage strengths and forms of certain
medications used by Medicaid patients. As a result of this settlement, Omnicare will pay $38,182 to
the Delaware Medicaid program and will pay a $76,365 penalty to the state’s General Fund.
“We are holding this company accountable for overcharging the Medicaid program as a result
of drug switches that it initiated,” said Timothy Mullaney, Director of the Attorney General’s Fraud
and Consumer Protection Division. “The Attorney General’s Office will continue to stand up for
taxpayers by identifying and weeding out Medicaid fraud.”

From April 1, 2000 through December 31, 2005 Omnicare used a “therapeutic interchange
program” to aggressively switch patients from brand-name drugs to generic drugs and also switched
various forms and strengths of drugs. One stated purpose of the therapeutic interchange program was
to lower costs for third-party payers, including Medicaid. However, the Attorney General’s Medicaid
Fraud Control Unit investigation revealed that as a result of some of these switches the Delaware
Medicaid program actually paid more for certain drugs. Specific examples include patient switches by
Omnicare:

? from 150 mg and 300 mg ranitidine (generic Zantac) tablets to the equivalent capsules, which
caused Medicaid to pay a higher price.
? from 10 mg and 20 mg fluoxetine (generic Prozac) capsules to the equivalent tablets, which
caused Medicaid to pay a higher price.
? from 15 mg buspirone (generic Buspar) dosage strength to 7.5 mg dosages, which caused
Medicaid to pay a higher price.

Two whistleblowers contributed to the discovery of these violations by Omnicare. This case
was prosecuted by Deputy Attorney General Daniel Miller, Director of the Attorney General’s
Medicaid Fraud Control Unit. The Attorney General’s office encourages anyone who may know of
possible Medicaid Fraud to call and report it to the Delaware Medicaid Fraud Control Hotline at
(302)577-5000.
# # #

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.