McKesson Settles Rx Drug Pricing Case With 29 States


Topics: Health Costs, Marketplace, Medicaid, States

Jul 30, 2012

The nation’s largest drug wholesaler by revenue will pay $151 million to settle a lawsuit that alleged the company inflated prescription drug prices for state Medicaid programs.

The Wall Street Journal: McKesson To Pay $151 Million To Settle Drug-Pricing
McKesson, the nation’s largest drug wholesaler by revenue, deliberately drove up the prices of some 1,400 brand-name drugs from 2001 to 2009, state and federal officials alleged in a lawsuit. Prices for some widely used blockbuster drugs, like Pfizer Inc.‘s Lipitor or Eli Lilly & Co.‘s Prozac, rose by as much as 25%, causing Medicaid programs to overpay by millions, state officials said (Martin, 7/27).

The Associated Press: 29 States Settle Medicaid Rx Drug Overpayment Case
California and 28 other states have reached a $151 million settlement in a lawsuit alleging one of the country’s largest drug wholesalers inflated prescription drug prices, costing the states’ Medicaid programs millions in overpayments. California Attorney General Kamala Harris announced the settlement with San Francisco-based McKesson Corp. on Friday. In California, Harris says the overpayments went on from 2001 through 2009 (7/27).

This is part of Kaiser Health News‘ Daily Report – a summary of health policy coverage from more than 300 news organizations. The full summary of the day’s news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.

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