Tuesday, December 6, 2011

Investigation Uncovers False, Inflated Drug Prices

Posted By on Tue, Dec 6, 2011 at 9:59 AM

A $2 million settlement has been crafted between Idaho and one of the world's largest pharmaceutical companies, resolving claims relating to average wholesale prices, the amount Medicaid pays for prescription drugs for low-income Idahoans.

A state investigation into Johnson and Johnson and its subsidiaries found published average wholesale prices as high as 26 percent more than the actual price of pharmaceuticals, according to Idaho Attorney General Lawrence Wasden.

"The publishing of false drug prices harms taxpayers and the state," said Wasden. "What we uncovered is that in a very large number of instances, drug manufacturers reported false and inflated prices for their drugs."

The settlement, approved by the Fourth District Court in Ada County, will divide the $2 million between the state's General Fund, a consumer protection account, and the state's Cooperative Welfare Fund.

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