Delaware, 29 other states settle drug pricing overcharge case

Delaware will get $115,000 for its Medicaid program as part of a drug pricing settlement.

McKesson Corporation, one of the nation’s largest drug wholesalers, has reached a settlement with the Attorneys General in 30 states.  The company was accused of artificially inflating the prices of large quantities of prescription drugs paid by Medicaid, therefore violating state and federal False Claims Acts. 

According to Delaware Attorney General Beau Biden, Medicaid in the state was overcharged hundreds of thousands of dollars.  “This settlement will help restore those taxpayer funds so that Medicaid can continue to serve the many Delawareans whose health care depends on it,” Biden added.

McKesson was accused of reporting inflated average wholesale prices to a publisher of drug prices, First Data Bank, therefore inflating many benchmark prices that are used to set reimbursements.

The company has said the claims are without merit but determined that the settlement was in the best interests of employees, customers, suppliers and shareholders given the uncertainty of litigation.

The US government settled a federal portion of the lawsuit in April for more than $187 million.  The federal case combined with the state’s settlement means that a total of $329,000 is being reimbursed to Delaware.

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                                (The Associated Press contributed to this article)

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