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

Share this article:

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)

Share this article:

More in News

Facilities on high alert for Ebola in Ohio; authorities issue guidance

Facilities on high alert for Ebola in Ohio; ...

Federal and state organizations have released new Ebola guidance for healthcare workers in long-term care and other settings, following the second case of a nurse acquiring the virus in the ...

Nonprofit senior living margins increased by 50%, survey finds

Average operating margins increased dramatically in the last year for nonprofit senior living companies, according to a recent survey of C-suite executives.

Nursing home psychiatrist in federal custody on 52 counts of fraud, including ...

Authorities have arrested a nursing home psychiatrist and charged him with 52 counts of healthcare fraud, the U.S. Attorney for the Northern District of Texas announced Thursday.