tci Medicare Compliance & Reimbursement - 2003 Issue 31

Pharmaceuticals: LOOKING INWARD ON MEDICAID PRICING, REBATES

Sparked by federal scrutiny, drugmakers examine compliance practices. Medicaid rebates and drug pricing issues are heating up, and drug manufacturers are examining their practices to set things right. The latest example: Bristol, TN-based King Pharmaceuticals says it's adjusting its financial statements to reflect about $46.5 million in Medicaid overpayments between 1998 and 2002. That adjustment arose from an internal review by the audit committee of King's board of directors - a review that was sparked by a Securities and Exchange Commission investigation. The company says the adjustment relates to amounts it underpaid Medicaid under the Medicaid rebate program...

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