State settles claims against pharmaceutical company

FRANKFORT, Ky. (WTVQ) – Kentucky will participate in a multistate settlement with Warner Chilcott U.S. Sales LLC to resolve claims that the company bribed doctors to prescribe its products, including the osteoporosis drugs Atelvia and Actonel.

Under the terms of the settlement, Warner Chilcott agreed to pay $102 million to the federal government, Kentucky and a consortium of other states. Kentucky’s Medicaid Program will receive $40,000.

The settlement outlines how the New Jersey company’s bribes included taking doctors out for expensive dinners at upscale restaurants or bringing free lunches to doctors’ offices for the entire staff.

According to the settlement, Warner Chilcott also paid doctors to act as “speakers” at these free dinners and lunches, although they were social in nature and not accompanied by any educational presentations.

Warner Chilcott also pleaded guilty to felony health care fraud and agreed to pay a criminal fine of $23 million. Warner Chilcott’s former president and three district managers were indicted on criminal charges.

The Kentucky Medicaid program received just over $174,000 from the settlement. After reimbursing the federal government for its share, Kentucky Medicaid will retain $40,434.34 as its state share, which represents the recovery of an additional $20,757 over and above what Medicaid spent on Warner Chilcott drugs.