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Forum staff reports, Published January 03 2009

North Dakota gets $67,000 in Medicaid settlement

BISMARCK – North Dakota Human Services officials say the state has received more than $67,000 as its share of a settlement with drug maker Cephalon Inc.

Officials say the state’s share of $67,723 is part of a $425 million settlement involving the National Association of Medicaid Fraud Control Units and the federal government. The company was accused of illegally marketing three of its drugs.

Federal prosecutors, in announcing the settlement last fall, said Cephalon also agreed to plead guilty to one misdemeanor count of distribution of misbranded drugs.

Officials say the settlement reimburses the federal government and states for amounts paid by the Medicaid program as a result of the company’s improper marketing campaign. The program covers medical services for the needy.

The settlement includes a $375 million civil settlement and $50 million in criminal fines and penalties.