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Texas Receives $10M In Medicaid Fraud Settlement

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(credit: Joe Raedle/Getty Images)

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DALLAS (CBSDFW.COM) – The Texas state attorney general’s office has recovered millions of dollars from a drug maker in a case of Medicaid fraud.

Fougera Pharmaceuticals Incorporated agreed to a nearly $23 million settlement with the state and federal government. Because the Medicaid program is jointly funded by Texas and the federal government, Texas will receive $10 million.

Tom Kelley with the State Attorney General’s office says investigators found the company committed fraud by reporting inflated drug prices to Medicaid over several years.

“Since 2002, the Civil Medicaid Fraud Division’s recoveries for the State of Texas have reached close to $500 million dollar for  taxpayers,” says Kelley.

Fougera is the New York based subsidiary of Sandoz  Incorporated.

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