California Attorney General Rob Bonta today announced a $75 million nationwide settlement with global pharmaceutical company Bristol Myers Squibb (BMS), resolving allegations that BMS underpaid the drug rebates owed to Medi-Cal and other state Medicaid programs. According to a complaint filed by a whistleblower, BMS overcharged the states for its pharmaceuticals by decreasing the rebate amount the company, like other drug manufacturers, must periodically pay to ensure that states pay competitive prices for pharmaceuticals. Of the $75 million BMS will pay to resolve the allegations against the company, $41,360,522.93 will go to the federal government and $33.639,477.07 to the states involved. California’s share of the settlement is $2,356,842.71.
“Using falsification and deception to underpay drug rebate payments to Medi-Cal undermines Medi-Cal’s ability to look after the millions of Californians who rely on the program for their essential, even life-saving medications,” said Attorney General Bonta. “We will continue to step in when corporations make decisions that compromise the interests, health, and wellbeing of our state's residents.”