Medco Health Unit Settles Overbilling Suit For $5.3M

Law360, New York (February 23, 2007, 12:00 AM EST) -- A subsidiary of drug benefit program administrator Medco Health Systems has agreed to pay $5.3 million to settle claims of overbilling.

Accredo Health Group, which Medco acquired in 2005, reached the settlement in January, according to a filing with the U.S. Securities and Exchange Commission.

The allegations of overbilling and making false claims arose in conjunction with a joint venture controlled by Accredo.

The company, in which Accredo had an 80% stake, provided a blood-clotting product to a California pharmacy. The pharmacy’s billings to MediCal for...
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