According to the state’s Attorney General’s office, the parent company of Aventis Pharmaceuticals has agreed to pay $828,500 in the settlement resolving Idaho’s claims relating to reported “average wholesale prices.”
Idaho filed lawsuits against several prescription drug manufacturers, including Aventis, in 2007, seeking to recover taxpayer money for excessive prices Idaho Medicaid paid for prescription drugs. By law, Idaho Medicaid must reimburse pharmacies at the “estimated acquisition cost” of the drug, plus a dispensing fee. Until July 2011, Idaho Medicaid primarily used “average wholesale price,” as reported by drug manufacturers, as a basis for determining that amount.
In the latest case, Idaho officials say, for example, one unit of Aventis’ pharmaceutical product, Allegra, had a published average wholesale price of $2.44 in 2003, but the AG’s investigation revealed an actual average wholesale price of $1.94 in that year – a 26 percent difference between the published price and the actual price.
As part of the settlement, Aventis admitted no liability or wrongdoing.
Idaho has recovered more than $23 million in average wholesale price settlements with 32 drug manufacturers. Two lawsuits are still pending against four other drug manufacturers. (Idaho Attorney General’s Office)