The Taxpayers Against Fraud Education Fund, a national non-profit organization, awarded Virginia’s Medicaid Fraud Control Unit the 2014 “Honest Abe” Integrity in Government Award. Previous recipients include congressmen, senators and inspectors general, and it is the second time the state’s MCFU has been recognized by the organization.
In the past year, the MFCU has collected more than $61 million in fines, penalties and court-ordered restitutions.
"When health care providers divert public funds for their private benefit, they are stealing from all of us and undermining an important system that connects thousands of low-income Virginians with needed medical services,” Attorney General Mark Herring said in a press release Tuesday. “I appreciate the hard work and dedication of the professionals in our MFCU, and congratulate them on this well-deserved honor."
The state unit has handled some of the biggest fraud investigations ever led by a state — the largest being against Abbott Laboratories for the off-label marketing of a mood-stabilizing drug called Depakote. This case led to a $1.5 billion settlement, including a $198 million asset forfeiture, which today remains the largest asset forfeiture in Medicaid history.
Most recently, MFCU collected a $37 million settlement against the McKesson Corporation over allegations the company conspired to inflate prices for more than 400 brand-name prescription drugs.
MFCU’s allocation from the state budget is entirely funded by its own recoveries in settlements.
The award received bipartisan praise, with Virginia House Speaker William Howell releasing a press release to congratulate the unit. He warned against using the award as a justification for Medicaid expansion under the Affordable Care Act.
“These dedicated public servants work tirelessly to root out fraud and abuse in a rapidly growing Medicaid system,” he said. “[However,] the MCFU’s work only captures a fraction of the overall fraud, abuse and inefficiencies in the Medicaid system.“
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