Attorney General Jack Conway today announced that Kentucky will join the federal government and 15 other states in a $28 million settlement with Healthpoint, Ltd. The settlement resolves a lawsuit against Texas-based Healthpoint over allegations it unlawfully marketed its prescription skin ointment, Xenaderm.
In 2002, Healthpoint began marketing Xenaderm, a prescription medication used primarily to treat nursing home patients’ bed sores, also known as “decubitus ulcers,” without approval by the Food and Drug Administration (FDA). Healthpoint also allegedly promoted that Xenaderm was “Medicaid reimbursed.” Generally, Medicaid only pays for drugs that have been approved by the FDA.
“Even after Healthpoint received questions from state Medicaid programs, the company failed to disclose that Xenaderm was ineligible for Medicaid reimbursement,” General Conway said. “I am pleased that we were able to stop these deceptive marketing practices and recover money for a vital state program and for Kentucky taxpayers.”
Under the terms of the settlement, the Kentucky Medicaid program will receive nearly $194,000.
Since Attorney General Conway took office in January 2008, his Office of Medicaid Fraud and Abuse Control has recovered or been awarded nearly $295 million dollars for the state and federal Medicaid programs. These cases range from lawsuits and settlements against pharmaceutical companies to cases against individual providers.
The Attorney General’s Tip Line for reporting allegations of Medicaid fraud is 1-877-228-7384.