HOUSTON — Texas Attorney General Ken Paxton announced a nearly $34 million settlement with AstraZeneca Pharmaceuticals LP over allegations that the company used an illegal kickback scheme to influence prescriptions covered by Texas Medicaid.
Under the settlement, AstraZeneca will pay $33.998 million to the state.
Paxton’s office filed the lawsuit under the Texas Health Care Program Fraud Prevention Act, alleging AstraZeneca provided free nursing services, reimbursement support and other incentives to healthcare providers to encourage them to prescribe the company’s medications.
The attorney general’s office also alleged AstraZeneca paid third parties to send nurses and other healthcare professionals to recommend its drugs to providers under the guise of nonbranded counseling. Prosecutors alleged the company used those incentives to influence prescribing decisions.
According to the attorney general’s office, Texas Medicaid covered many of the resulting prescriptions, leading to millions of dollars in claims allegedly affected by the inducements.
The settlement resolves the state’s claims related to the case.
“I will not allow Big Pharma to misuse taxpayer dollars to put profit ahead of Texans’ health,” Paxton said in a statement. “My office will continue aggressively pursuing healthcare fraud to protect taxpayer dollars and the integrity of our healthcare system.”
The attorney general’s office said it continues to pursue Medicaid fraud cases involving major pharmaceutical companies, including Eli Lilly and Sanofi-Aventis.
An AstraZeneca spokesperson said the company agreed to the settlement to resolve the investigation while maintaining that its programs complied with the law.
“We are pleased to have reached a resolution to this industry-wide investigation that allows AstraZeneca to move forward enabling patients, including those receiving Medicaid, to access our lifesaving treatments,” the spokesperson said. “AstraZeneca denies these claims and continues to firmly believe our programs are lawful, ethical and address an area of unmet need for patients. We remain committed to operating with integrity, in full compliance with all applicable laws and regulations, and to continuing to bring innovative medicines to the patients who need them.”