McGraw, feds seek judgment in $2.7M dispute

By John O'Brien | Oct 19, 2011


CHARLESTON (Legal Newsline) – With a loss in an identical case behind him, West Virginia Attorney General Darrell McGraw is again arguing over the amount being withheld by the federal government from the state's Medicaid program.

The U.S. Court of Appeals for the Fourth Circuit ruled earlier this year that the federal Centers for Medicare and Medicaid Services, which administers a large percentage of funds used by states on their Medicaid programs, was owed nearly $450,000 from McGraw's 2004 settlement with Dey, Inc. The ruling lifted a stay on an identical case – a dispute over $2.7 million.

McGraw apparently won't appeal the Fourth Circuit's decision to the U.S. Supreme Court, and he and CMS filed their motions for summary judgment in the $2.7 million case on Monday.

The Departmental Appeals Board's decision to withhold $2.7 million in Medicaid funds from the state "should be reversed and the case remanded for a calculation or reimbursement that accounts for the losses consumers suffered and for the statutory penalties to which the attorney general is entitled," McGraw's motion says.

It calls the disallowance amount arbitrary, capricious and an abuse of discretion. McGraw made the same argument in the Dey dispute, and the Fourth Circuit rejected it.

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