DEL. SETTLES MEDICAID DRUG PRICE CASE

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Delaware, along with those of 29 other states, reached a settlement against the McKesson Corporation, one of the nation’s largest drug wholesalers.

Biden

The settlement resolves claims that the company violated state and Federal False Claims Acts by artificially inflating the prices that Medicaid paid for large quantities of prescription drugs.

“Because of this illegal conduct, the Delaware Medicaid program was overcharged hundreds of thousands of dollars that should have been spent on meeting the medical needs of our citizens,” Delaware Attorney General Beau Biden said. “This settlement will help restore those taxpayer funds so that Medicaid can continue to serve the many Delawareans whose healthcare depends on it.” The states’ investigation focused on McKesson’s reporting of drug pricing data for multiple drugs which, in turn, was used to set pharmacy reimbursement rates for drugs dispensed to Delaware Medicaid beneficiaries.

In April, the U.S. government settled the federal portion of this lawsuit for more than $187 million. The agreement announced   recovers the state Medicaid share for Delaware, which totals $115,000.

 

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