Tuesday, July 31, 2012

New Mexico to share in drug overpricing payout

The agreement settles allegations the company deliberately inflated drug prices by as much as 25 percent from 2001 to 2009.

One of the largest drug wholesalers in the U.S. will pay $151 million to 29 states and the District of Columbia to settle a lawsuit alleging the company inflated prices of hundreds of prescription drugs.

The lawsuit alleges that San Francisco-based McKesson Corp. caused state Medicaid programs to overpay millions of dollars in reimbursements, according to an Associated Press report on KRQE.com.

The agreement settles allegations the company deliberately inflated drug prices by as much as 25 percent from 2001 to 2009.

McKesson representative Kris Fortner said the claims against the company are without merit, but ?given the inherent uncertainty of litigation, we determined that this settlement was in the best interest of our employees, customers, suppliers and shareholders.?

In addition to New Mexico, states covered in the settlement include Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Maine, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Pennsylvania, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia and Wyoming. The District of Columbia also was covered.

Read the full report here.

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Source: http://feeds.bizjournals.com/~r/bizj_national/~3/ECrsR_GNgDM/new-mexico-to-share-in-drug.html

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