Attorney General Gansler Announces
$1 Million Payment from Schering-Plough
Maryland Attorney General Douglas F. Gansler today announced
the receipt of $964,471.83 from the drug manufacturer Schering-Plough
Corporation, which is headquartered in Kenilworth, New Jersey.
The nearly one million dollars was paid directly to the Maryland
Medicaid program as part of a $435 million national settlement
reached with Schering to resolve allegations about its marketing
and distribution of a number of its drugs and allegations that
it underpaid rebates due to the state Medicaid programs under federal
law. Including payments made by Schering to the federal government
for the federal portion of the cost of the Maryland Medicaid program,
the total value of the settlement to Maryland was $1,639,202.00.
Schering was alleged to have failed to report to the federal
government discounts on its drug Claritin Redi-Tabs that it provided
to a large HMO. This failure reduced the amount of rebates due
to any State Medicaid program that purchased Claritin Redi-Tabs
beginning in 1998 and continuing through 2001. Schering also resolved
similar allegations with respect to the potassium supplement K
during the period 1995 to 2000. Schering was also alleged to have
engaged in the improper marketing of drugs used to treat Hepatitis
C by making illegal payments to physicians to induce them to prescribe
the drugs. The settlement also resolves allegations that Schering
made illegal payments to physicians to induce them to use its cancer
drugs Temodar and Intron A for uses not approved by the Federal
Food and Drug Administration. These activities caused the submission
of false claims to the Medicaid program.
The settlement was
negotiated by the Medicaid Fraud Control Unit of the Attorney
General’s Office and the National Association
of Medicaid Fraud Control Units. In making the announcement today,
Attorney General Gansler thanked Assistant Attorney General Mike
Travieso for his work on the case.