Bristol-Myers Squibb Must Answer Medicaid Fraud Allegations

Bristol-Myers Squibb will have to answer allegations it manipulated the calculation of its Medicaid rebate to pay substantially less than it owed from 2007 to 2016.

The U.S. District Court for the Eastern District of Pennsylvania Nov. 29 declined the pharmaceutical giant’s motion to dismiss the allegations brought by the former CEO of the Healthcare Distribution Management Association, Ronald Streck. Streck alleged the company used two schemes to defraud Medicaid—one in which the company mischaracterized service fees as discounts and one in which it disguised price increases as service fees.

The court said Streck sufficiently stated his case for it ...