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Medco to settle fraud charges for $163 million

Although the settlement is not yet final, Medco Health Solutions, Inc. has announced it will settle allegations by the U.S. Dept. of Justice related to the company’s handling of prescriptions for federal employees and retirees. The pharmacy benefits manager was accused of inappropriately canceling prescriptions, changing prescriptions without a doctor’s consent, underfilling prescriptions, and other misconduct.

The suit, originally filed by two whistleblowers under the qui tam provisions of the False Claims Act, was joined by the government.

The settlement amount is estimated to be $163 million.

The Wall St. Journal’s May 5, 2006 story was summarized at the Kaiser Network site.

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