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AG Derek Schmidt asks Congress to return pharmaceutical fraud payments to states

Release Date: May 17, 2017

TOPEKA – (May 17, 2017) – A bipartisan coalition of state attorneys general today asked Congress to introduce legislation that would allow the federal government to return prescription drug settlement money to the states, Kansas Attorney General Derek Schmidt said.

In a letter to the U.S. Senate Finance Committee, Schmidt, along with the attorneys general of 48 other states, the District of Columbia and Puerto Rico, asked the committee to authorize the federal government to return to the states tens of millions of dollars in pharmaceutical fraud settlements involving Medicare Part D drugs. For individuals who are covered by both the Medicare and Medicaid programs, the Part D drug benefit is paid for jointly by the state and federal government. The states, however, have never received any share of the money from the pharmaceutical fraud settlements.

“[O]ver the past decade the Federal government has received, and continues to receive, millions of dollars in recoveries for fraud and overpayment cases involving Part D drugs,” the attorneys general wrote. “However, despite the states’ considerable—and growing—financial contributions to the Part D program, the states have not received a single dollar of those recoveries. We request your assistance in addressing this inequity and recommend federal legislation that would allow the Federal government to return a proportionate share of all Part D recoveries to the states.”

A copy of the letter is available at http://bit.ly/2rr5Igx.

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