Texas Attorney General Ken Paxton reached a settlement with AstraZeneca Pharmaceuticals to resolve allegations that the company engaged in an illegal kickback scheme that improperly affected Texas Medicaid payments for prescription drugs. Under the settlement agreement, the company will pay the state $33,998,000.00.
Attorney General Paxton sued AstraZeneca under the Texas Health Plan Fraud Prevention Act (“THFPA”). The Texas lawsuit alleges that AstraZeneca provided free care services and reimbursement support to prescribers and paid third parties to deploy nurses and other health care professionals to recommend AstraZeneca drugs to health care providers under the guise of off-brand consultations.
The inducements are intended to induce providers to prescribe AstraZeneca’s drug. In many cases, these prescriptions were covered by Medicaid, resulting in millions of dollars in Texas Medicaid claims that were tainted by AstraZeneca’s illegal inducements.
Now, under the settlement, AstraZeneca will pay $33,998,000 to resolve the state’s claims and reimburse Texas for its misuse of taxpayer funds.
Source: Texas Attorney General’s Office
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