4th Circ. Backs US In Medicaid Overbilling Row With W.Va.

Law360, New York (July 7, 2011, 7:42 PM EDT) -- The Fourth Circuit affirmed Wednesday that the federal government was entitled to withhold Medicaid funding from West Virginia after the state failed to give the U.S. part of a settlement that ended a fight accusing Dey Inc. of inflating drug prices, causing the state to overpay.

The Medicaid Act authorizes the Centers for Medicare and Medicaid Services to stop payments when a state has overpaid a provider, as West Virginia admitted it did in underlying litigation against the drug company, the court ruled.

West Virginia's fight...
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