The U.S. attorney in Philadelphia announced a $155 million settlement with Medco Health Solutions, Franklin Lakes, N.J., resolving several civil whistle-blower charges, including allegations that the pharmacy benefit manager solicited and received kickbacks from drug manufacturers to treat their products favorably. The settlement includes a five-year corporate integrity agreement. Medco officials werent available for comment at deadline. In May, the company announced it had reached an agreement in principle with the federal government and set aside $163 million to resolve the case. In a news release at the time, company officials said, Averting further disruption, uncertainty and distraction for our company and our clients is the right decision.
The $155 million settles the charges regarding kickbacks from manufacturers and resolves allegations that Medco paid health plans kickbacks for their business, falsified quality performance data and billed federal health programs for medications and services not provided. Medco also will pay $9.5 million to settle a separate whistle-blower lawsuit and $8 million to end a dispute with the CMS over secondary payers. Earlier this month, the company named former HHS Secretary Tommy Thompson to its board of directors. -- by Mark Taylor