June 30, 2014

$2.8 million multi-state settlement reached with medical device manufacturer

HARRISBURG - The Office of Attorney General today joined in a $2.8 million multi-state and federal settlement to resolve allegations concerning insulin infusion pumps.

Pennsylvania joined 35 states and the federal government to resolve the allegations that Minnesota-based medical device manufacturer Medtronic Inc. and its subsidiary Medtronic Minimed Inc. - doing business as Medtronic Diabetes - submitted claims to Pennsylvania's Medicaid program for replacement insulin infusion pumps that were initiated through the improper solicitation of Medicaid recipients.

The settlement resolves a federal and state False Claims Act lawsuit filed in 2011 by former Medtronic employees in the U.S. District Court for the Northern District of Texas. The complaint alleges that Medtronic directly solicited Medicaid recipients to replace their insulin infusion pumps in violation of a federal Anti-Solicitation Rule and similar state laws.

Approximately $327,000 will go to settle Medicaid-based claims nationally. Pennsylvania will receive more than $13,000.

A team from the National Association of Medicaid Fraud Control Units (NAMFCU) conducted settlement negotiations with Medtronic on behalf of the states and included representatives from offices of Attorneys General for the states of California, Indiana, Ohio, Oregon, Texas and Virginia.

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