The Idaho Attorney General's Office has recovered more than $2.5 million to settle allegations that taxpayers ended up paying excessive prices for drugs prescribed to low-income Medicaid patients.
By law, Medicaid reimburses payments at the so-called "estimated acquisition costs" for drugs at what is considered an average wholesale price. But AG Lawrence Wasden said that in some cases, the prices were anything but average. As an example, GlaxoSmithKline's pharmaceutical product Wellbutrin had a published average wholesale price of $2.01 in 2003, 27 percent higher than the actual price.
SmithKline Beecham Corporation, doing business as GlaxoSmithKline, has agreed to pay $2.6 million in the settlement following Wasden's investigation. Since 2005, the AG has resolved 14 average wholesale price matters with drug manufacturers, resulting in the recovery of more than $20 million.
Three more average wholesale price cases, naming eight other drug manufacturers, are still pending.