MCKESSON PAYS $151 MILLION TO SETTLE WHISTLEBLOWER CASE OVER FALSE DRUG PRICING

The McKesson Corporation will pay $151 million to resolve allegations that it violated the Federal FGalse Claims Act for inflating pricing data for a large number of prescription drugs causung the states Medicaid program to over-pay for the medications.The drug pricing data at issue in this settlement concerns the “Average Wholesale Price” (AWP) benchmark used by most states, including South Dakota, to set pharmacy reimbursement rates for pharmaceuticals dispensed to South Dakota Medicaid beneficiaries. South Dakota alleges 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 South Dakota to set reimbursement. In April, the federal government settled the federal portion of this lawsuit for over $187 million.