TRENTON
- Attorney General Anne Milgram and Criminal
Justice Director Gregory A. Paw announced
today that New Jersey received more than
$1.7 million in a Medicaid civil settlement
negotiated with Purdue Pharma.
The
civil settlement involves conduct by Purdue
Pharma, a major drug manufacturer, that
occurred between 1995 and 2005. The settlement
was based on the allegation that Purdue
unlawfully marketed its pain medication
OxyContin by misrepresenting that it had
less abusive and addictive potential than
other similar drugs. It is alleged that
by providing such inaccurate information
to physicians, Purdue engaged in mislabeling
or misbranding of the medication in violation
of the U.S. Food and Drug Administration’s
regulations.
The
total national settlement with Purdue Pharma
is $634.5 million. Of that amount, the national
Medicaid program received $130 million.
The Medicaid program is jointly funded by
the state and federal governments. The joint
federal and state share of the settlement
for the Medicaid program in New Jersey is
$3.2 million, of which New Jersey received
$1,758,812.
“This
civil settlement returns a sizable amount
of money to the State of New Jersey and
to the Medicaid program, which assists and
benefits those residents who need the aid
the most,” said Attorney General Milgram.
“We are committed to investigating
and prosecuting Medicaid fraud and other
abuses that affect the Medicaid program
in New Jersey.”
Attorney
General Milgram credited Assistant Attorney
General John Krayniak of the Medicaid Fraud
Control Unit in the Office of Insurance
Fraud Prosecutor for his efforts in this
matter. Krayniak coordinated with the state
team that negotiated this settlement along
with representatives of the U.S. Department
of Justice.
The Medicaid program provides health care
services and prescription drugs to persons
who may not otherwise be able to afford
such services and medicines. The State of
New Jersey administers the Medicaid program
through the Division of Medical Assistance
and Health
Services and through the Office of Insurance
Fraud Prosecutor’s Medicaid Fraud
Control Unit, which investigates both criminal
and civil Medicaid fraud and abuse in that
program.
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