Alabama seeks to keep feds from drug awards - WSFA.com Montgomery Alabama news.

Alabama seeks to keep feds from drug awards

MONTGOMERY, AL - The state of Alabama has filed a lawsuit to prevent the federal government from taking half of the $282 million the state has been awarded in lawsuits accusing pharmaceuticals of overpricing Medicaid drugs.

Attorney General Troy King said at a news conference Monday that state Medicaid officials had received a letter from their federal counterparts asking the state to immediately pay the federal government $140 million from the jury awards and settlements in the cases.

King said the state filed a complaint in federal court in Montgomery Monday seeking to stop the federal government from collecting the money by cutting its payments to the state Medicaid program. King said cutting the federal allotment would mean the cash-strapped program would have to cut medical services to children, low-income Alabama residents and the elderly.

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