Health Care FinanceLegal Actions/Court DecisionsMedicaidPart D/Prescription Drugs

Mallinckrodt sued, underpaid hundred of millions in Medicaid rebates, US says

(By Maia Anderson for Becker’s Hospital Review)

The U.S. Justice Department is suing Mallinckrodt, alleging the drugmaker knowingly underpaid Medicaid hundreds of millions of dollars.

Drugmakers are required to pay state Medicaid programs quarterly rebates in exchange for Medicaid’s coverage of their drugs. The rebates include an inflationary component, which is designed to insulate Medicaid from drug price increases that outpace the rate of inflation.  Continue reading article here…

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