Kentucky is part of a group of states that will share a $124 million settlement from four pharmaceutical companies in response to allegations that the companies submitted false claims to Medicaid.
Kentucky will receive $1.6 million, and more than $500,000 of it will go to the state Medicaid program, according to the state attorney general's office.
The drug companies are part of a Medicaid Rebate Program in which they agree to pay quarterly rebates to Medicaid based on the amount of money Medicaid pays for each of their drugs. It was alleged that the companies underpaid their rebate obligations.
The majority of the settlement, $118 million, is being paid by Mylan Pharmaceuticals Inc. and UDL Laboratories Inc. AstraZeneca Pharmaceuticals agreed to pay $2.6 million and Ortho McNeil Pharmaceutical Inc. agreed to pay $3.4 million.