The state of Idaho will receive $1.7 million under a settlement with a drug company over falsely inflated pricing.
According to the Idaho Attorney General’s Office, the settlement with prescription drug manufacturers Watson Pharmaceuticals and Watson Pharma resolves Idaho’s claims relating to the “average wholesale prices” reported by the companies.
Idaho filed lawsuits against several prescription drug manufacturers, including Watson, in 2007, accusing them of charging Idaho Medicaid clients higher prices for their products than the actual wholesale cost. For example, one unit of Watson’s drug, Lorazepam, had a published average wholesale price of 66 cents in 2003, but Idaho’s investigation revealed an actual average wholesale price of 5 cents. The settlement is intended to reimburse taxpayers for the excessive prices Idaho Medicaid paid for prescription drugs, though the Watson’s admitted no liability or wrongdoing.
$1.05 million will be deposited into the Cooperative Welfare Fund to reimburse the federal share of the Medicaid overpayments. Nearly $424,000 will be deposited in the state’s General Fund, and $50,000 will reimburse the Attorney General’s Office for investigative and legal costs.
Idaho has recovered more than $22 million in average wholesale price settlements with 31 drug manufacturers. Two lawsuits are still pending against five other drug companies. (Idaho AG)
