AstraZeneca has agreed to pay $2.5 million in a settlement with the State of Idaho over the cost of drugs for the state’s Medicaid program. The state bases its reimbursement rates to pharmacies for prescription drugs on the “average wholesale price” reported by drug manufacturers. Idaho Attorney General Lawrence Wasden said in a press release:
Where published prices are false or misleading, the taxpayers are significantly harmed by excessive Medicaid reimbursements. Investigation by my office has revealed that the reported average wholesale price often is not related to the actual wholesale price paid for the drug. Misrepresenting the wholesale price is a violation of the Idaho Consumer Protection Act.
In one example, the investigation on behalf of the state found that the drugmaker’s reported average wholesale price for Prilosec was 26% greater than the actual price. That’s typical of what we have found in this same type of litigation. The $2.5 million payment is intended to reimburse taxpayers for the overpricing.
Source: Lawyers USA Online
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