Tue May 15, 2012
Six Million Dollar Settlement Announced
The office of Kentucky Attorney General Jack Conway says $6 million has been recovered from Merck and Company in a lawsuit filed against pharmaceutical companies. Its the latest in a series of settlements over so-called "average wholesale price" cases. The suits allege that defendent drug companies published false and inflated average wholesale prices for their products, which didn't bear any relationship to the prices actually charged to customers.
The Kentucky Medicaid program had depended on the published average wholesale prices to figure drug reimbursement rates.
The settlement comes with one of the largest healthcare companies in the world.
The Attorney General's office maintains a toll free line to report allegations of Medicaid fraud. That number is 1-877-228-7384.