Idaho – like a number of states – has settled several “Average Wholesale Price” (AWP) cases. In its most recent settlement, the State of Idaho will collect $790,000 from Forest Laboratories Inc. over allegations the company overcharged for its drugs. Thus far, Idaho has recovered more than $21 million in AWP settlements with 29 drug manufacturers. At this juncture, three lawsuits against seven other drug manufacturers that were filed in 2007 are still pending. In the Forest Lab case, investigators found that one Celexa pill had a published average wholesale price of 48 cents in 2003 when the actual average wholesale price was 37.6 cents, a 28 percent markup. Just over $185,000 of the latest settlement will be deposited into the state’s general fund, while $461,000 will be held as an offset to future Medicaid payments.
Source: Insurance Journal
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