Attorney General News Release: WYOMING MEDICAID RECEIVED $614,000 IN PHARMACEUTICAL SETTLEMENT

 

OFFICE OF ATTORNEY GENERAL GREG PHILLIPS                     

NEWS RELEASE

 

Contact:

Christine Stickley

Director Medicaid Fraud Control Unit

(307) 777-3780

 

September 12, 2012

                                                                                                                                          

 

WYOMING MEDICAID RECEIVED $614,000

IN  PHARMACEUTICAL SETTLEMENT

 

(Cheyenne, WY)  - Wyoming Attorney General Greg Phillips and his Medicaid Fraud Control Unit announced today that Wyoming received over $614,000 dollars in a national settlement against McKesson Corporation. 

 

Under the terms of the settlement, GSK has agreed to pay over $151 Million to settle claims that McKesson violated the Federal False Claims Act by reporting inflated pricing data for a large number of prescription drugs, causing the state’s Medicaid program to overpay for those drugs. Medicaid is funded jointly by the federal government and Wyoming.  

 

The drug pricing data at issue in this settlement concerns the “Average Wholesale Price” (AWP) benchmark used by most states, including Wyoming, to set pharmacy reimbursement rates for pharmaceuticals dispensed to Wyoming Medicaid beneficiaries.  Wyoming alleged that McKesson, one of the largest drug wholesalers in the country, reported inflated AWP pricing data to First Data Bank (FDB), a publisher of drug prices, thereby inflating many AWPs that are used by Wyoming to set reimbursement.  In April, the federal government settled the federal portion of this lawsuit for over $187 million; this agreement recovers the state Medicaid share for Wyoming. 

 

The suit was filed in US District Court in New Jersey.  To date, federal and state governments have also recovered more than $2 billion from drug manufacturers that were alleged to have reported inflated AWP information to FDB and other publishers of drug prices.

 

The Wyoming Medicaid Program will receive over $614,000.  After reimbursing the federal government for its contribution, the program will retain $252,969.91.  That money will go directly back into Medicaid funding for the State for future expenditures.

 

The Attorney General’s Medicaid Fraud Control Unit is the only Wyoming law enforcement agency dedicated to the investigation and prosecution of Medicaid fraud. The Unit helps raise awareness as well as investigates and prosecutes provider fraud and abuse of residents in Medicaid-funded nursing homes.  Anyone wishing to report suspicions regarding any of these concerns may contact the Medicaid Fraud Control Unit in Cheyenne (307) 777-3444 or (800) 378-0345.  Medicaid fraud information can also be found on the Attorney General’s web site: http://attorneygeneral.state.wy.us.

 

Help stop Wyoming Medicaid Fraud.  For more information or to report possible fraud, visit http://stopwyomedicaidfraud.com

 

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