Supreme Court Declines to Save Kmart in Drug Pricing Lawsuit

A decision against Kmart Corp. for allegedly misreporting retail drug prices won’t be reviewed by the Supreme Court, leaving in place a whistle-blower victory (Kmart Corp. v. United States ex rel. Garbe, U.S., No. 16-408, review denied 1/9/17).

The Supreme Court declined to wade into False Claims Act arguments over whether pharmacies have to report discounts given to retail customers to the government as the usual and customary prices of drugs. The usual and customary prices are generally what a retail customer pays out-of-pocket for a particular drug and are used by the government for Medicare and Medicaid ...