Attorney General Chris Koster Announces Medicaid Settlement

6 years 7 months 2 weeks ago Tuesday, February 28 2012 Feb 28, 2012 Tuesday, February 28, 2012 8:21:00 AM CST February 28, 2012 in News
By: KOMU Staff

JEFFERSON CITY - Attorney General Chris Koster announced a settlement between the Missouri Medicaid program and KV Pharmaceutical. 

Missouri Medicaid will receive more than $289,000 to settle allegations that KV Pharmaceutical misrepresented two of its drugs were approved for coverage under federal and state health care programs, including Medicaid.

KV Pharmaceutical is based in St. Louis and will pay a total of $17 million to the federal government and participating states as a result of conduct by one of its subsidiaries, Ethex Corportation.

Ethex, now no longer in business, faced accusations that it failed to notify the Centers for Medicare and Medicaid Services that two unapproved drugs, Nitroglycerin Extended Release Capsules and Hyoscyamine Sulfate Extended Release Capsules, did not qualify for federal health care coverage. As a result, the government argued Ethex knowingly caused the false filing of claims for payment for the drugs.

There were no charges that the drugs caused risk or harm to patients taking the drugs.

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