Mckes­son set­tles with states for $151 mil­lion

Modern Healthcare - - LATE NEWS -

Mckes­son Corp., San Fran­cisco, en­tered into a $151 mil­lion, mul­ti­state agree­ment to set­tle al­le­ga­tions that it over­billed Med­i­caid for brand-name drugs. New York and Cal­i­for­nia led the na­tional set­tle­ment team that in­ves­ti­gated charges that the drug dis­trib­u­tor re­ported in­flated prices on 1,400 pre­scrip­tion prod­ucts, in vi­o­la­tion of fed­eral and state laws, ac­cord­ing to news re­leases from New York’s and Cal­i­for­nia’s at­tor­neys gen­eral. The team, which rep­re­sented 29 states and the Dis­trict of Columbia, also ne­go­ti­ated the set­tle­ment agree­ment. “We did not ma­nip­u­late drug prices and did not vi­o­late any laws,” Mckes­son said in a state­ment. “How­ever, given the in­her­ent un­cer­tainty of lit­i­ga­tion, we de­ter­mined that this set­tle­ment was in the best in­ter­est of our em­ploy­ees, cus­tomers, sup­pli­ers and share­hold­ers.” The com­pany in April en­tered into a $190 mil­lion agree­ment with the U.S. Jus­tice Depart­ment to set­tle the fed­eral por­tion of the al­le­ga­tions. Of­fi­cials said at the time that they deny any wrong­do­ing. New York will re­cover $64 mil­lion from the set­tle­ment whereas Cal­i­for­nia will get nearly $23.6 mil­lion, ac­cord­ing to the news re­leases. The set­tle­ments re­solve a 2005 whis­tle-blower case that charged Mckes­son with in­flat­ing the av­er­age whole­sale prices that it re­ported to First Data Bank, a pub­lisher of drug prices, by as much as 25% be­tween Aug. 1, 2001, and Dec. 31, 2009. States use the First Data Bank pric­ing data to set re­im­burse­ment rates.

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