Pharma Company Reaches $743,000 Medicaid Fraud Settlement With Washington State

Washington State's Medicaid program will receive $368,192 in settlement money. stevecoleimages/Getty

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As elected members of Congress keep trying to take away millions of people's healthcare, it's easy to forget pharmaceutical companies are up to shady business too.

This week's alleged case in point: Pharmaceutical company Celgene. The company will be paying $280 million to the federal government, 28 states, and the District of Columbia to settle claims that it inappropriately marketed drugs for cancer patients. Washington State—which accused Celgene of off-label marketing drugs Revlimid and Thalomid to treat brain cancer, leukemia, and prostate cancer without FDA approval—will receive $742,578.

Here are more of the allegations from the Washington State Attorney General's Office:

When prescribing Revlimid and Thalomid, Celgene directed doctors to change patients’ diagnosis codes to ensure Medicaid paid for the medication. Celgene paid physicians kickbacks for prescribing the medications, a violation of the Anti-Kickback Statute.

Washington's Medicaid program, specifically, is set to receive $368,192.

And here's the response from Celgene, via the New York Times:

Brian Gill, a spokesman for Celgene, which is based in New Jersey, said in a statement on Tuesday that the company denied any wrongdoing and said it was “settling to avoid the uncertainty, distraction, and expense of protracted litigation.”