Nebraska to receive part of drug settlement

Posted at 4:53 PM, May 02, 2016
and last updated 2016-05-02 17:53:46-04
Nebraska will receive $1.48 million as part of a federal settlement with pharmaceutical company Wyeth and Pfizer.
The company agreed to a $784.6 million dollar settlement over allegations the drug maker knowingly underpaid rebates to the Medicaid drug rebate program. The rebates in questions were for the drugs Protonix Oral and Protonix IV between 2001 and 2006. The settlement arose from two whistleblower lawsuit filed in federal court in Massachusetts. The federal government and 35 states, including Nebraska, intervened in the case.
The rebate program was enacted by Congress in 1990 as a cost containment measure for Medicaid's payment for outpatient drugs.