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News Release    

July 22, 2008      

For Further Information Contact:
William R. Steinhaus, County Executive
(845) 486-2000

Dutchess County to Receive Over $76,000 in Medicaid Pharmaceutical Pricing Lawsuit

Poughkeepsie… Dutchess County Executive William R. Steinhaus announced today Dutchess County will receive more than $76,000 as part of a nationwide settlement of claims against Bristol-Myers Squibb in a Medicaid fraud lawsuit.

Dutchess County, along with New York State and numerous other New York counties whose collective participation was coordinated by the New York State Association of Counties (NYSAC), was part of a class action suit against 47 pharmaceutical companies, alleging the companies fraudulently reported inflated Average Wholesale Prices (AWP) of their drugs.   The AWP form the basis for Medicaid payments.

“We have always been aggressive in our efforts to protect our taxpayers from the wasteful expense of Medicaid fraud,” said County Executive Steinhaus.    “Since 1993, the fraud detection and prevention programs we have implemented have saved taxpayers millions of dollars.  This recent lawsuit is one more example of how seriously we take Medicaid fraud prevention in Dutchess County.”  The Dutchess County Department of Social Services pursues all potential cases of Medicaid fraud.   In 2006 alone, the DSS Special Investigation Units collected more than $262,000 in Medicaid recoveries.   

The inflated AWP prices resulted in millions of dollars of overcharges to the county and state Medicaid budget.   The lawsuit alleged violations of Federal and State Medicaid law, Medicaid and common law fraud, breach of contract, unfair and deceptive trade practices and unjust enrichments and sought to recover the County’s 25% share of Medicaid overpayments. 

The New York Association of Counties (NYSAC) coordinated the counties’ collective participation in the lawsuit.


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Last Updated: 7/22/2008