Iowa Attorney General, Tom Miller, announced Friday that Iowa has won a first step in its medicaid lawsuit against big pharma for allegedly over-charging taxpayers for medications. Eight of the 78 drug companies sued by the state have settled for $4.3 million. After lawyers’ fees and the federal government has taken its share, Iowa will be left with about $1.2 million, some of which may actually reach it’s financially strapped Medicaid program. Iowa’s program insures about 422,000 adults and children who are poor, pregnant, blind or disabled.
Now for the bad news. The eight settling companies are among the smallest sued by Iowa. These companies include: Dey, Inc., and with a group including Abbott Laboratories, Inc.; Amgen, Inc.; Baxter International, Inc. (and associated companies); Ben Venue Laboratories, Inc.; Boehringer Ingelheim Roxane, Inc. (and associated companies); Immunex Corp.; and Roxane Laboratories, Inc. The suit continues against the other drug companies not parties to the settlement.
A similar settlement was reported by the state of Washington, joined by a team of states including New Hampshire, Ohio and New York. The Attorney General for Washington, Rob McKenna, announced a $124 million settlement over the classification of drugs by drug companies in a way that reduced the amount owed in rebates to Medicare.
All settling companies in the Iowa suit deny wrongdoing.
Related Resources:
- Drug Firms Settle Lawsuit Alleging Inflated Prices (DesMoines Register)
- Iowa Attorney General’s Office Press Release
- Iowa Settles with Eight Drugmakers (LegalNewsline.com)
- Criminal Prosecution for Medicare and Medicaid Fraud (provided by Law Offices of Jeffrey C. Grass)
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