AstraZeneca agrees to pay nearly $34 million to Texas to resolve alleged Medicaid kickback claims
Austin, Texas – Texas Attorney General Ken Paxton has announced a nearly $34 million settlement with AstraZeneca Pharmaceuticals LP, resolving allegations that the company engaged in an illegal kickback scheme that influenced prescriptions paid for through the state’s Medicaid program.
Under the agreement, AstraZeneca will pay $33,998,000 to the State of Texas to settle claims brought under the Texas Health Care Program Fraud Prevention Act. The settlement concludes litigation in which the state alleged the pharmaceutical company improperly encouraged healthcare providers to prescribe its medications through unlawful incentives.
According to the lawsuit, AstraZeneca offered free nursing services and reimbursement support to medical providers while also paying third-party organizations to send nurses and other healthcare professionals to physicians’ offices. State officials alleged those representatives promoted AstraZeneca medications while presenting their interactions as non-branded counseling rather than marketing efforts.
Texas argued that these practices were designed to persuade healthcare providers to prescribe AstraZeneca products.
Prosecutors further alleged that many of those prescriptions were paid for by the Texas Medicaid program, resulting in millions of dollars in Medicaid claims that the state contends were influenced by improper inducements.
Settlement resolves fraud allegations
Without further litigation, AstraZeneca agreed to pay $33,998,000 to resolve the state’s claims and reimburse Texas for funds connected to the alleged misconduct.
Attorney General Paxton said the settlement reflects the state’s commitment to protecting public funds and ensuring that healthcare decisions are not influenced by illegal financial incentives.
“I will not allow Big Pharma to misuse taxpayer dollars to put profit ahead of Texans’ health,” said Attorney General Paxton. “My office will continue aggressively pursuing healthcare fraud to protect taxpayer dollars and the integrity of our healthcare system.”
State officials said the settlement is another step in ongoing efforts to investigate Medicaid fraud and recover taxpayer money when healthcare companies are accused of violating state law.
The Attorney General’s Office noted that the AstraZeneca agreement is part of a broader campaign targeting alleged fraud involving major pharmaceutical manufacturers.
According to the state, legal actions have also been filed against other large drug companies, including Eli Lilly and Sanofi-Aventis, as Texas continues pursuing claims involving alleged fraud and abuse connected to Medicaid and other healthcare programs.
Officials say those efforts are intended to ensure taxpayer-funded healthcare programs operate fairly while preventing companies from using improper financial incentives to influence medical decisions.
The settlement resolves the state’s claims against AstraZeneca regarding the alleged kickback practices and returns nearly $34 million to Texas while reinforcing the state’s continued focus on protecting the integrity of its healthcare system and the responsible use of public funds.
