Attorneys General oppose proposed Medicaid rule




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Attorneys Ge neral oppose proposed Medicaid rule

San Antonio Business Journal
October 31, 2003

Texas Attorney General Greg Abbott joined 45 other state attorneys general in opposing a federal Medicaid rebate rule that would allow prescription drug companies to destroy drug pricing information and reporting practices after three years.

Destroying such records, according to Abbott, could interfere with ongoing state investigations and litigation related to allegations of fraudulent pricing in the Medicare and Medicaid programs.

" Texas has aggressively fought for years to recover funds that were allegedly obtained through deceptive pricing practices," Abbott says.

This year alone, Texas recovered $18.5 million in a settlement with Dey Laboratories in an ongoing lawsuit against several defendants. Had this proposed federal rule been in effect, these funds might not have been recovered, Abbott says.

If the proposed rule is approved in its current form, it would take effect on Jan. 1.

Abbott and the other 45 state attorneys general submitted a letter to Health and Human Services Secretary Tommy G. Thompson and Thomas A. Scully, administrator for the Centers for Medicare and Medicaid Services, to voice their concerns.

"If the federal government allows these companies to destroy records that could otherwise be used as evidence in court, it could jeopardize current and future legal efforts," he says.

" Texas taxpayers could stand to lose millions of dollars due to massive acts of fraud against these government programs. We owe it to taxpayers and those in need of Medicaid services to keep this money in Texas ," he adds.