Montana AG Sues 18 Drug Companies Over Prescription Price Fraud: Montana Attorney General Mike McGrath on Feb. 25 filed a lawsuit against 18 pharmaceutical companies-including Abbott Laboratories, Bristol-Myers Squibb and Glaxosmithkline — charging that the companies' pricing practices defrauded the state, consumers and others of millions of dollars, according to the attorney general's office.

“Montana taxpayers have been cheated out of millions of dollars,” McGrath said. “And it is especially troubling that Medicaid and Medicare consumers — often senior citizens — are hardest hit by this deception.”

The 45-page complaint, filed in the U.S. District Court in Helena, charges the drug companies with engaging in unfair and deceptive trade practices, breaching a contract with the State of Montana, committing Medicaid fraud, and submitting false claims for payment to the state.

McGrath seeks restitution for Montana residents and the state and federal governments, along with civil penalties, recovery of Medicaid costs and punitive damages, according to McGrath's office. The Attorney General also asks for accurate reporting of future average wholesale prices of pharmaceuticals.

Montana is the second state to file a suit related to inflated AWPs. Nevada filed a similar complaint in January.

HHS Expands Medicaid Coverage to Low-Income, Childless Adults in D.C.: The U.S. Department of Health and Human Services has approved a District of Columbia section 1115 waiver to expand Medicaid benefits to low-income, childless adults. The waiver will cover adults between the ages of 50 and 64, who have incomes at or below 50 percent of the federal poverty level.

Normally, under federal law, nondisabled, childless adults are not eligible for Medicaid at any income level, according to HHS.

“Our goal is to give local authorities the flexibility they need to strengthen their Medicaid programs and extend health coverage to more Americans,” said HHS Secretary Tommy Thompson. “Through waiver demonstrations like this one, Americans who have no other avenue for care will get the help they need to stay healthy.”

According to the Centers for Medicare and Medicaid Services, Section 1115 of the Social Security Act allows states to test or demonstrate projects that are likely to assist promoting the objectives of the Medicaid program. Projects generally are approved for five years.

Since 1982, 17 other states have approved section 1115 waivers by HHS for various projects.

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