06 August 2004

City Sues Drug Makers in RX 'Fraud'

The Bloomberg administration sued 44 drug companies yesterday for allegedly ripping off millions of dollars from city coffers through overcharges of prescription drugs.

The suit notes the city paid $597 million to provide prescription drugs to poor residents last year, or 13 percent of the Big Apple's budget.

In the suit filed in Manhattan federal court, the city charged that the drug companies inflated the price of prescriptions to the Medicaid program and failed to pay rebates resulting in overcharges of "many millions of dollars" to the city, state and federal governments.

The scheme amounts to a "bribe" to pharmacists who distribute drugs to customers and also benefit from the higher costs, the suit says.

As an example, the city said it was overcharged by 40 percent for the antidepressant drug Fluoxetine, manufactured by defendant Par Pharmaceutical Inc. of New Jersey.

Pharmacists can purchase Fluoxetine for 5 cents per pill, but the city and health plans were charged 60 cents per pill.

Corporation Counsel Michael Cardozo said the city will not stand for fraud at taxpayer expense.

By CARL CAMPANILE
NY Post

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