Frankfort, KY – State attorney general Greg Stumbo has filed a lawsuit accusing drug companies of inflating prices to defraud the state's Medicaid program.
The suit was filed late last week in Franklin Circuit Court. It's the latest in a series of suits by states accusing drug companies of bilking them by overstating their wholesale prices.
The action by Stumbo alleges 41 companies have illegally manipulated Medicaid's system for reimbursing pharmacies, hospitals and doctors for selling or prescribing prescription drugs.
Reimbursement rates are based on average wholesale prices published in pharmeceutical directories. The suit alleges that since at least 1992, drug companies have reported false and inflated wholesale prices for virtually all their drugs.