Drug firm to pay $151 million to settle overcharging claims
Drug wholesaler McKesson Corp has agreed to pay $151 million to settle claims by 30 states that it inflated pricing information for more than 1,400 brand name drugs.
The settlement, announced Friday, resolves claims by the states, which said the inflated drug prices cost their Medicaid programs millions.
New York and California led negotiations for the states and were major beneficiaries of the settlement.
McKesson, based in San Francisco, said it continues to believe the claims are without merit.
According to court papers, McKesson marked up prices by 25 percent when reporting to First Databank, a publisher of drug prices that most state Medicaid programs use to set payment rates. "This settlement holds McKesson accountable for attempting to make millions of dollars in illegal profits," New York Attorney General Eric Schneiderman said in the statement.
New York will receive $64 million of the $151 million in restitution, Schneiderman said. California will receive more than $23 million, according to California Attorney General Kamala Harris. "We cannot allow dollars meant for patients to be diverted to inflate corporate profits," Harris said in a statement. Illinois will receive $10 million, Lisa Madigan, attorney general for that state, said in a statement.
Darn...Looks like those ol' "job-creators" just got busted to the tune of $151 MILLION, for jacking up prices, gouging their customers, and profiteering off of people's meds... I HATE it when that happens....
Drug firm to pay $151 million to settle overcharging claims
Drug wholesaler McKesson Corp has agreed to pay $151 million to settle claims by 30 states that it inflated pricing information for more than 1,400 brand name drugs.
The settlement, announced Friday, resolves claims by the states, which said the inflated drug prices cost their Medicaid programs millions.
New York and California led negotiations for the states and were major beneficiaries of the settlement.
McKesson, based in San Francisco, said it continues to believe the claims are without merit.
According to court papers, McKesson marked up prices by 25 percent when reporting to First Databank, a publisher of drug prices that most state Medicaid programs use to set payment rates. "This settlement holds McKesson accountable for attempting to make millions of dollars in illegal profits," New York Attorney General Eric Schneiderman said in the statement.
New York will receive $64 million of the $151 million in restitution, Schneiderman said. California will receive more than $23 million, according to California Attorney General Kamala Harris. "We cannot allow dollars meant for patients to be diverted to inflate corporate profits," Harris said in a statement. Illinois will receive $10 million, Lisa Madigan, attorney general for that state, said in a statement.
Darn...Looks like those ol' "job-creators" just got busted to the tune of $151 MILLION, for jacking up prices, gouging their customers, and profiteering off of people's meds... I HATE it when that happens....
I just assumed that any company that would gouge States' Medicaid programs and consumers to the tune of $151 Million, would do so because they assumed they had blanket carte blanche to do so from the so-called "business friendly" slime in the GOP?
Of course, screwing State's Medicaid programs, and Medicaid clients is not exactly a "victimless crime", is it? And since we know the pharma guys have the morals of a fruit-fly, it's an easy conclusion to jump to without having to name names.... :Whistle
