Idaho will get $1.7 million in the latest of a string of settlements with drug companies that allegedly overcharged the Idaho Medicaid program, according to Attorney General Lawrence Wasden.
Watson Pharmaceuticals Inc. and Watson Pharma Inc. agreed to pay the money to settle Idaho's claims that they reported higher-than-actual prices for drugs covered by Idaho Medicaid. For example, the sedative Lorazepam was being sold for $0.049 per unit in 2003, but the company reported to Idaho Medicaid a price of $0.662 per unit that year, Wasden said.
The Medicaid program uses prices reported by drug companies to calculate how much it will reimburse pharmacies for the drugs.
Wasden sued several drug makers, including Watson, in 2007 for such claims.
Idaho's haul from drug-pricing settlements now totals $22 million. Two lawsuits are still pending against five companies.
About $1.1 million of the settlement will go toward paying back the Medicaid program. About $424,000 will be deposited into the state's general fund to be appropriated by the Idaho Legislature. The Attorney General's consumer protection account will get $50,000 of the settlement to cover its investigative and legal costs.
The companies have admitted no liability or wrongdoing, Wasden said.