The Idaho attorney general’s office has announced a $1.65 million settlement with a generic drug maker over pricing, but nearly 70 percent of the money goes to the federal government.
Idaho Medicaid primarily uses the “average wholesale prices” of drugs as reported by drug manufacturers to set reimbursement rates for pharmacies.
Attorney General Lawrence Wasden says in 2003, Sandoz reported its generic version of Prozac sold for an average wholesale price of nearly $2.60 a pill. Wasden found the price was actually less than 22 cents a pill.
Sandoz admits no wrongdoing in reaching the settlement, which must be approved by the Fourth District Court in Ada County. Sandoz is the generics pharmaceutical division of Novartis AG.
Attorney General spokesman Bob Cooper tells the Idaho Statesman that Idaho will keep about $500,000 of the settlement.