Why doesn't this story surprise me? http://finance.yahoo.com/news/Omnica....html?x=0&.v=1

Omnicare Inc., which dispenses drugs to nursing homes and long-term care facilities, said it will pay $21.1 million to settle a whistleblower lawsuit.

The company will pay $11.6 million to Michigan and $9.5 million to Massachusetts. The states alleged Omnicare defrauded Medicaid programs in Michigan and Massachusetts by overcharging the agency for drugs.

Under Massachusetts and Michigan law, pharmacies cannot charge Medicaid higher rates than they charge private health insurers, Michigan Attorney General Mike Cox said. Cox said Omnicare's Specialty Pharmacy Services business overcharged Michigan from 2002 to 2009. Omnicare said it denies the allegations and is not acknowledging any liability
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The Covington, Ky., company also is paying $385,000 to David Kammerer, who filed the initial lawsuit against Omnicare in August 2003. Those payments covered his expenses and attorney's fees. Omnicare disclosed the settlement in a form filed Tuesday with the Securities and Exchange Commission, and said it agreed to the terms on Sept. 15.

Omnicare said the settlements resolve all allegations of inappropriate billing starting in August 1997. It said the U.S. government will receive $5.5 million from the Michigan settlement and $3.8 million from the Massachusetts settlement.

In August Omnicare said it had set aside $24.2 million for the expected settlements.