Wyeth called out by Medicaid

According to The AP, Wyeth cheated Medicaid out of millions of dollars by overcharging for a the stomach acid drug Protonix. The Justice Department has joined in two lawsuits that were started by whistle blowers.

The court papers claim that between 2000 and 2006, Wyeth offered steep discounts to thousands of hospitals for two versions of Protonix, a drug that suppresses stomach acid.

By law, manufacturers of brand-name drugs are required to offer the same rebates to state Medicaid programs that they provide to other customers.

The government claims the maneuver helped the company avoid paying hundreds of millions of dollars in rebates to Medicaid, a health care program for the poor that is funded by state and federal money.

Read the full story here.