November 2, 2009

               LANSING - Attorney General Mike Cox today announced that his office has filed a Medicaid fraud suit against pharmaceutical manufacturer Amgen, purchasing group International Nephrology Network (INN), and wholesaler ASD Healthcare, accusing each of defrauding Michigan's Medicaid program and offering illegal kickbacks to promote Aranesp, Amgen's anemia drug. 

The complaint alleges the companies knowingly offered illegal kickbacks to medical providers to increase sales of the drug, including offering free Aranesp product to medical providers and encouraging them to bill third party payers such as Michigan's Medicaid program.  Amgen is also alleged to have conspired with INN and ASD Healthcare to offer illegal kickbacks to medical providers to attend all-expense paid meetings with the intention of increasing sales of Aranesp and luring new providers away from competitor drugs. 

As a result of the illegal inducements, the complaint asserts the companies caused medical providers to falsely certify to Michigan's Medicaid program that the providers were in compliance with federal and state anti-kickback statutes that prohibit bribes to medical providers.  Because compliance with these laws is a condition of payment by the Medicare and Medicaid programs, the defendants allegedly caused thousands of ineligible claims for Aranesp to be paid and millions of dollars in damages to Michigan and other state's Medicaid programs.  The exact amount of damages in Michigan has not yet been determined.

"Michigan families deserve to know that every one of their tax dollars is being used appropriately," said Cox.  "By rooting out Medicaid fraud we are ensuring these dollars are being spent as they were intended, to help those who need it most."

Cox teamed up with 14 other states in the action, joining a whistleblower suit filed in the United States District Court for the District of Massachusetts in 2006 (Docket No. 06-10972), which remained under seal while the federal and state governments investigated the allegations brought by a former Amgen sales and marketing professional.  The United States Department of Justice continues to investigate these allegations. 

The case is being handled by the Michigan Attorney General's Health Care Fraud Division.  The multi-state investigation was coordinated by a team appointed by the National Association of Medicaid Fraud Control Units that includes attorneys, investigators and auditors from New York, Massachusetts, Michigan, and California working in coordination with the ongoing federal investigation.

Other states participating in the suit include California, Delaware, the District of Columbia, Florida, Hawaii, Illinois, Indiana, Louisiana, Massachusetts, Nevada, New Hampshire, New York, Tennessee, and Virginia.

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