HARRISBURG – A settlement agreement between the Attorney General’s Antitrust Section and several drug companies has recovered in excess of $13 million for Pennsylvania state agencies that paid inflated prices for various prescription drugs.
Attorney General Tom Corbett said the agreement involves Amgen Incorporated, of Thousand Oaks, California; Baxter Healthcare Corporation, of Deerfield, Illinois; and Boehringer Ingelheim Roxane Inc., of Ridgefield, Connecticut, along with subsidiaries of each of those companies.
Corbett said the agreement resolves a lawsuit filed by the Attorney General’s Office in 2004 which alleged that the companies had manipulated the wholesale prices for various drugs in order to be able to charge higher prices to various state-funded prescription drug programs.
“This agreement returns millions of dollars to Pennsylvania’s Medicaid and PACE prescription drug program, which will help low-income and older residents get the medications they need to stay healthy,” Corbett said. “The settlement also requires the companies to provide detailed drug cost information to Pennsylvania agencies, allowing them to more closely monitor future prices and reimbursements.”
Corbett said the settlement includes $6,131,252 for the Pennsylvania Department of Public Welfare, for the PA Medicaid program; $4,748,808 for the Pennsylvania Department of Aging, for the PACE prescription drug program for seniors; along with $2,494,566 for the Pennsylvania Employee Benefit Trust Fund (PEBTF).
“Now, more than ever, it is essential to ensure that state agencies and programs get the maximum value for the tax dollars they spend,” Corbett said. “We will vigorously pursue any allegations that the Commonwealth is being overcharged or that businesses are artificially manipulating prices.”
Corbett said the settlement agreement was filed in Commonwealth Court.
