At midyear, Bayer entered settlement talks with state and federal officials. Some other companies also began talking about possible settlements, although most insisted, as they still do, that the government has no case because the companies aren't reimbursed by Medicare or Medicaid. Ms. McElroy has since recused herself from the investigation for personal reasons. Texas could be an important battleground. It is the only state that requires drug makers to report when they change prices for drugs covered by Medicaid.
Investigators believe that many drug makers submitted inflated price data.
The new system, they contend, has been manipulated as well. The drug makers deny the charges, saying the forms are impossible to understand. If a settlement with Bayer can be reached, officials hope, more drug companies will settle, and litigation may be unnecessary. Recently, though, Mr. Bentley and his colleagues received a financial boost. Send an electronic postcard to somebody you know.