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BALTIMORE (WMAR) -
Attorney General Douglas Gansler has announced that Maryland and 39 other states, the District of Columbia and the federal government has entered into a settlement agreement to resolve allegations that BioScrip, Inc. overbilled government healthcare programs.
BioScrip billed Medicaid and other government healthcare programs for prescription medications as if the government programs were the primary insurance carrier even when patients had other insurance coverage.
The Maryland Medicaid program will receive $11,207.08 from the settlement.
"The deterrent effect here is as important as recovering taxpayer dollars," said Attorney General Gansler. "If a company seeks undue profits from Maryland taxpayers, we're coming after you."
The investigation resulted from a qui tam action originally filed in the United States District Court of Minnesota under the federal False Claims Act and carious state false claims statutes.
The payment will provide restitution and other penalties to both State and Federal government for the false Medicaid claims.