Challenge nets $4.8 million for Medicaid

August 21, 2012

By Staff

State Attorney General Rob McKenna said Washington is due to receive $4.8 million for Medicaid through a national settlement against drug wholesaler McKesson Corp.

Officials said the company violated the Federal False Claims Act and state false claims acts by reporting inflated pricing information for a large number of prescription drugs, overcharging the state Medicaid program.

The case revolved around the average wholesale price benchmark used by most states to set pharmacy reimbursement rates for drugs dispensed to Medicaid beneficiaries.

State officials said McKesson Corp. reported inflated average wholesale price data to First Data Bank, a publisher of drug prices, thereby inflating many average wholesale prices used by the state to set reimbursement rates.

Through a national settlement, Washington recovered $10.3 million, including the $4.8 million for the state Medicaid program.

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