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TRENTON
- Attorney General Anne Milgram and Criminal
Justice Director Gregory A. Paw announced
today that New Jersey will receive $58,848
in a Medicaid fraud civil settlement negotiated
with Medicis Pharmaceutical Corp.
Medicis Pharmaceutical is a national corporation
engaged in the distribution and sale of
pharmaceuticals. It has agreed to pay $9.8
million nationally as part of a civil settlement
to resolve civil fraud allegations that
Medicis caused improper claims to be billed
to Medicaid and other federally funded health
insurance programs.
The
improper billing occurred between 2001 and
2004. Medicis engaged in the unlawful off-label
marketing of the drug Loprox. Medicis marketed
Loprox to treat conditions for which the
U.S. Food and Drug Administration (FDA)
had not approved the drug’s use. Such
conditions included diaper dermatitis and
other related skin disorders in children
under the age of 10.
Of the $9.8 million that Medicis has agree
to pay to settle this matter nationally,
the federal government will receive $5,390,000
and the total states’ share is $4,410,000.
New Jersey’s total share is $58,848.41.
This includes recovery for state Medicaid
payments, restitution, and civil penalties.
“Every
dollar lost to fraud or abuse is one less
dollar available to help the most needy
citizens of our state,” said Insurance
Fraud Prosecutor Greta Gooden Brown. “The
Office of the Insurance Fraud Prosecutor
is committed to fighting healthcare fraud
and returning much needed dollars to victims
of insurance fraud including Medicaid, insurance
companies and taxpayers.”
Criminal
Justice Director Paw credited Assistant
Attorney General John Krayniak of the Medicaid
Fraud Control Unit for his efforts in this
matter. He coordinated with the state team
that negotiated this settlement along with
representatives of the U.S. Department of
Justice.
In
addition to the monetary payment, Medicis
has entered into a Corporate Integrity Agreement
with the U.S. Department of Health and Human
Services, Office of Inspector General. The
company’s conduct will be monitored
by the government under this agreement.
The agreement can be found at www.oig.hhs.gov.
Prosecutor
Brown noted that some important cases have
started with anonymous tips. People who
are concerned about insurance cheating and
have information about a fraud can report
it anonymously by calling the toll-free
hotline 1-877-55-FRAUD
or visiting the Web site www.NJInsuranceFraud.org.
State regulations permit an award to be
paid to an eligible person who provides
information that leads to an arrest, prosecution
and conviction for insurance fraud.
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