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Prescription drug supplier resolves fraud claim by paying Michigan $11.6 million

Omnicare, Inc. supplies drugs to nursing homes and long-term care facilities.  By law, it cannot charge Medicaid higher rates than it charges private health insurers, but a Whistleblower claims that it did.  This week it paid Michigan and Massachusetts a total of $21.1 million dollars to settle the whistleblower claim for the years 2002 through 2009.  It continues to deny liability--even after paying 21 million dollars--and the day the settlement was announced Omnicare stock rose 21 cents a share.

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