Bristol-Myers Pays $75m Over Medicaid Rebates Case

Bristol-Myers Squibb (BMS) has agreed to pay the U.S. Government and participating states a total of $75 million to resolve allegations that it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program. The settlement resolves allegations that BMS underreported the “Average Manufacturer Prices (AMPs)” for a number of its drugs by “improperly reducing the reported AMPs for service fees paid to wholesalers, and by improperly excluding from the reported AMPs additional value it received pursuant to price appreciation provisions in its contracts with wholesalers,” the government contends. As a result, BMS allegedly underpaid quarterly rebates owed to the states and caused the government to be overcharged for its payments to the states for the Medicaid program.

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