Wisconsin joins U.S. in $678 million medical kickback settlement

Published: Sep. 24, 2020 at 9:07 PM CDT
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MADISON, Wis. (WMTV) - Attorney General Josh Kaul announced Thursday Wisconsin had joined the U.S. in a $678 million kickback settlement with a pharmaceutical company.

The Department of Justice explained that the proposed settlement with Wisconsin will resolve allegations that Novartis Pharmaceuticals Corporation paid kickbacks to health care practitioners in the form of cash, meals and more to induce them to prescribe medications that treat hypertension or Type 2 diabetes.

Novartis will pay $678 million to the United States, Wisconsin, 26 other states and Washington D.C. for the settlement. Wisconsin will be receiving a little less than $355,000 for the state Medicaid program.

About $103 million will resolve claims related to state Medicaid programs.

The DOJ noted that a whistle blower action was filed in 2011 in the U.S. District Court for the Southern District of New York. This settlement does not relate to any civil action filed by the state of Wisconsin.

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