Tuesday, August 10, 2010

Prescription Drug Companies Pay Idaho $1.9 Million in Settlement

Posted By on Tue, Aug 10, 2010 at 11:03 AM

Idaho will receive $1.9 million from four prescription drug manufacturers as part of a legal settlement involving claims of falsely reporting "average wholesale prices" of prescription drugs.

Idaho's Attorney General Lawrence Wasden says subsidiary companies of international pharmaceutical manufacturer Teva Pharmaceutical Industries: Teva Pharmaceuticals USA, Barr Laboratories, Ivax Corporation and Ivax Pharmaceuticals have not admitted any liability or wrongdoing in reporting inflated or false average wholesale prices to Idaho Medicaid, which provides prescription drugs to low-income Idahoans. Idaho Medicaid uses average wholesale prices reported by drug manufacturers as a benchmark price to determine the "estimated acquisition cost" when reimbursing pharmacies or hospitals.

Falsely reporting these prices can result in forcing taxpayers to overpay for that drug, while conversely, increasing returns on each of the drugs for the pharmaceutical companies.

Wasden says his office has resolved six AWP cases with drug manufacturers since 2005, totaling $7 million.

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