News in brief - May 24/31, 2004

Minn. judge allows access to drugmakers' files in reimportation case - Washington physician group settles fraud charges - Senate passes Medicaid buy-in for children with disabilities

Minn. judge allows access to drugmakers' files in reimportation case

A Minnesota judge in May ruled that the state's attorney general, Mike Hatch, has a right to access GlaxoSmithKline documents in his attempt to prove that the company broke antitrust laws when it restricted shipments of medicine to wholesalers and pharmacies in Canada that sell drugs to U.S. citizens. GlaxoSmithKline executives said they were disappointed with the decision and expect to appeal it.

In a statement, the company called its conduct "perfectly legal," noting that a federal court in Oklahoma last year ruled that drug reimportation from Canada violates U.S. laws. GlaxoSmithKline also noted that the Food and Drug Administration has said that reimportation puts patients at risk.

Washington physician group settles fraud charges

The University of Washington's physician practice has agreed to pay $35 million in restitution, damages and penalties to the state and federal government to settle charges that it over-billed Medicare and Medicaid. It's the largest settlement that a practice group affiliated with a teaching hospital has ever paid, according to the U.S. Attorney's Office for the Western District of Washington.

The settlement wraps up a more than four-year investigation into billing practices launched after a University of Washington auditor filed a whistle-blower complaint alleging that officials associated with the university billing office were aware of compliance problems, the U.S. Attorney's office stated.

"The University of Washington has demonstrated its commitment to comprehensive improvements in its billing compliance system, making clear the university's commitment to avoiding the mistakes of the past," said John McKay, U.S. attorney for Western Washington.

Earlier in the investigation, a neurosurgeon pleaded guilty to obstruction of a federal criminal health care investigation, and a nephrologist pleaded guilty to health care billing fraud.

Senate passes Medicaid buy-in for children with disabilities

A bill passed by the U.S. Senate would allow families of children with disabilities to buy into Medicaid if they make too much to qualify for the program but earn as much as 250% of the poverty level. The legislation is designed to avoid forcing working parents to forgo pay raises or other promotions to maintain Medicaid eligibility for their children with disabilities.

The measure could impact hundreds of thousands of middle-income families. Its estimated cost is $7 billion over 10 years. An identical bill is pending in the House.