Drugmaker Challenges Medicaid Alleging Rebate Misclassification

A generic drugmaker asked a federal court to prevent US health regulators from clawing back Medicaid rebates for drugs that were allegedly misclassified.

In a complaint filed Friday in the US District Court for the District of Columbia, Illinois-based pharmaceutical firm Fresenius Kabi alleged that the Centers for Medicare & Medicaid Services misclassified a number of the company’s generic medications, potentially leaving the company on the hook for higher payments to state Medicaid agencies.

Under the Medicaid Drug Rebate Program, manufacturers are required to divvy out higher rebates to state Medicaid programs if a drug is classified as a name-brand ...