Kentucky to join $90 million Medicaid suit against Healthpoint, Ltd.

FRANKFORT, Ky. (May 21, 2012) — Kentucky will join a civil lawsuit against Healthpoint, Ltd. in United States District Court, District of Massachusetts, according to Attorney General Jack.

The state’s motion to intervene in the $90 million whistleblower lawsuit was granted May 16.

Kentucky is one of 13 states that moved to join the lawsuit claiming that Healthpoint caused Medicaid to pay $90 million in claims for the drug Xenaderm despite the drug’s ineligibility for coverage.

“I am pleased that our motion to intervene in this lawsuit was granted,” General Conway said. “Kentucky’s Medicaid program paid more than $1 million for a medication that was being illegally marketed. I am hopeful we can recover this money on behalf of taxpayers.”

The plaintiffs allege that Xenaderm, an ointment used to treat bedsores, is a “less than effective” drug and/or is identical, related or similar to a drug deemed “less than effective” by the FDA. The primary active ingredient of Xenaderm is Trypsin, which was deemed “less than effective” by the FDA in 1970. Federal law and Kentucky regulations prohibit payment from the Medicaid program for prescription drugs determined by the FDA to be “less than effective,” as well as for products that are “identical, related or similar” to products considered not as effective.

The complaint further alleges that Healthpoint actively marketed Xenaderm to nursing homes as a Medicaid-eligible drug.

Since January 2008, Conway’s Office of Medicaid Fraud and Abuse Control has recovered or been awarded more than $230 million 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.

 

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