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News Release

For Immediate Release
July 27, 2012

Karin Eckel, Assistant Attorney General
(603) 271-1256

Attorney General Announces Medicaid Settlement with McKesson Corporation

Attorney General Michael A. Delaney announced today that New Hampshire, as part of a national settlement against the McKesson Corporation ("McKesson"), has resolved allegations that McKesson violated the Federal False Claims Act and various state false claims acts, by reporting inflated pricing data for a large number of prescription drugs during the period between late 2001 and March 2005, causing the state's Medicaid program to overpay for those drugs. Medicaid is funded jointly by the federal government and New Hampshire. As part of this settlement, New Hampshire will receive a total of $1.7 million in recoveries from McKesson.

The drug pricing data at issue in this settlement concerns the "Average Wholesale Price" (AWP) benchmark used by most states, including New Hampshire, to set pharmacy reimbursement rates for pharmaceuticals dispensed to state Medicaid beneficiaries. The state and federal governments alleged 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 the states to set reimbursement. In April, the federal government settled the federal portion of this lawsuit for over $187 million; this agreement recovers the state Medicaid share for New Hampshire.

New Hampshire and the twenty-nine other states which joined the lawsuit were represented by a national settlement team comprised of members from the states of California and New York working through the National Association of Medicaid Fraud Control Units.

New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301
Telephone: 603-271-3658