State, Merck reach $10.5M settlement

March 17, 2008

The state Attorney General’s Office has reached a $10.5 million settlement with drug maker Merck & Co. to settle a case involving drug rebates under Medicaid, according to the State House News Service.

The state’s Medicaid program will receive the funds as part of two separate global settlements totaling $649 million, according to the Attorney General’s office.

Massachusetts, along with 49 other states and the District of Columbia, alleged that the company failed to pay rebates due to state Medicaid programs under the federal Medicaid Drug Rebate Program.

Merck, which manufactures Vioxx, is also required to enter into a “corporate integrity agreement” with the U.S. Department of Health and Human Services to ensure the company will market, sell and promote its products in accordance with all federal health care program requirements, the News Service reported.