Idaho will get $1 million from a legal settlement resolving claims that prescription drugmaker Abbott Laboratories inflated drug prices, which resulted in overcharges to Medicaid.
About $243,000 of the money will go to the state's general fund, about $606,000 will go toward the federal government's share of Medicaid and $50,000 will repay the state's investigative and legal costs, according to an announcement from Attorney General Lawrence Wasden.
Wasden sued several drugmakers including Abbott in 2007 to recover taxpayer money. The resulting settlements have recovered $27 million from 37 drug manufacturers. The case against one last drug company is scheduled for trial in December.
Until July 1, 2011, Idaho Medicaid used a price reported by prescription drug companies as the primary basis for determining how much to pay pharmacies for drugs given to Medicaid beneficiaries. If that reported price was inflated, it would result in overcharges to Medicaid. Wasden's office's investigation found evidence that Abbott reported a price for the antibiotic Biaxin in 2003 that was inflated by 26 percent.
Abbott Laboratories admitted no liability or wrongdoing as part of the settlement.