Omnicare to pay $21 million in settlement for allegedly overcharging Medicaid

Nursing home pharmacy provider Omnicare Inc. on Tuesday said that it will pay $21 million to Michigan and Massachusetts to settle a whistleblower lawsuit.

David Kammerer, who had served as Omnicare's director of Medicaid relations, alleged that the company knowingly charged Medicaid as much as four times the amount it charged private healthcare insurers for the same drugs, according to the complaint filed against the company. Omnicare denied any knowledge of wrongdoing, and does not acknowledge any liability, according to The Associated Press.

Under the terms of the settlement, Omnicare will pay $9.5 million to Massachusetts and $11.6 million to Michigan. Kammerer will receive $385,000 to cover expenses and attorney fees, according to the AP. Omnicare late in 2009 paid $98 million to settle allegations it had been involved in a kickback scheme with drug maker Ivax. (McKnight's, 11/5/09)