A whistleblower alleged that Bristol-Myers Squibb misreported prices on more than 200 drug products, reducing Medicaid rebates it owed to states.

340B Entities Won’t Share in BMS’s $75 Million Medicaid Drug Pricing Settlement

340B covered entities were not included in Bristol-Myers Squibb’s $75 million settlement last week of a whistleblower’s claims that BMS “falsely reported improperly reduced average manufacturer prices” (AMPs) on multiple drugs from October 2007 through March 2016.

Ronald Streck, former president and CEO of the national trade association for drug wholesalers, sued BMS on behalf of the federal government and 29 states. He alleged that the company improperly treated compensation to wholesalers as price reductions, rather than as bona fide service fees, when calculating and reporting AMPs to the U.S. Centers for Medicare & Medicaid Services (CMS) for Medicaid drug rebate purposes. As a result, Streck alleged, BMS underpaid Medicaid drug rebates owed to the states and caused the federal government to be overcharged for Medicaid payments to the states. The settlement agreement lists 209 affected National Drug Codes (NDCs).

340B covered entities were not included in Bristol-Myers Squibb’s $75 million settlement last week of a whistleblower’s claims that BMS “falsely reported improperly reduced average manufacturer prices” (AMPs) on multiple drugs from October 2007 through March 2016.

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