Idaho and Washington are among 29 states and the District of Columbia who have reached a $151 million settlement in a lawsuit alleging one of the country’s largest drug wholesalers inflated prices for hundreds of prescription drugs.
The agreement with San Francisco-based McKesson Corp. settles allegations that the company deliberately inflated drug prices by as much as 25 percent, causing the states’ Medicaid programs to overpay millions of dollars in reimbursements.
An investigation by state and federal agencies found that McKesson inflated the prices of more than 1,400 brand-name drugs, including these commonly prescribed medications such as Adderall, Allegra, Ambien, Celexa, Lipitor, Neurontin, Prevacid, Prozac and Ritalin.
McKesson denied any wrongdoing in the settlement.
The settlement stems from a 2005 whistleblower lawsuit that was filed under federal and states’ false claims statutes. It alleged that McKesson inflated average wholesale prices reported to First Data Bank, which many state Medicaid programs use to set payment rates for pharmaceutical reimbursement.
The federal government settled its portion of the lawsuit for more than $187 million in April. (AP)