RICHMOND, Va. -- The federal government is again making its argument that West Virginia Attorney General Darrell McGraw gave the funds from a 2004 settlement to all the wrong parties.
The federal Department of Health and Human Services filed its response brief Sept. 27 in McGraw's appeal of the department's decision to claim nearly $450,000 it feels it was owed from the settlement.
That would come in the form of a disallowance of $446,607 in the feds' Medicaid funds appropriation to the State. The disallowance has been upheld by an appeals board and a federal judge in Charleston and is now before the U.S. Court of Appeals for the Fourth Circuit.
DHHS noted that McGraw and the private attorneys he hired to represent the State estimated that Dey LP, the defendant in the case, caused more than $950,000 of damage to the state Medicaid program. Dey settled for $850,000.
"West Virginia did not reimburse HHS for the federal share of its Medicaid overpayments or inform HHS of its settlement with Dey," the federal government's attorneys wrote in the brief.
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