Skip to Main Content

After years of litigation, Bristol Myers Squibb (BMY) agreed to pay $75 million, plus interest, to resolve allegations of knowingly underpaying rebates that were owed to state Medicaid programs.

The settlement, which the company had signaled a year ago was in the works, stems from a whistleblower lawsuit filed in 2013 by the former head of a health care industry trade group who had filed similar suits against several drug makers.


At issue are quarterly rebates that are based, in part, on what is known as the average manufacturer price that companies report to the government for each of their medicines that are covered by Medicaid. Generally, the higher the reported AMP for a drug, the greater the rebate the manufacturer pays to state Medicaid programs for its medicine.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!