Omnicare agrees to $52.5 million settlement in fraud case

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A Michigan subsidiary of Covington, KY-based Omnicare Inc. has agreed to a $52.5 million settlement in a Medicaid fraud civil lawsuit. It is the largest Medicaid fraud recovery in the state's history and includes $34 million in penalties, according to the attorney general.

State officials had charged Specialized Pharmacy Services with failure to credit Medicaid for drugs that were not consumed by beneficiaries, billing for drugs dispensed to beneficiaries who were deceased, and other crimes, according to Attorney General Mike Cox. Omnicare is the nation's biggest provider of pharmaceuticals to nursing homes, assisted living and other long-term care settings.

Cox stated that this settlement has no effect on the criminal charges filed against the president of Specialized, Daniel Lohmeier.