Drugmakers Settle With Idaho For $1.2M

Two drug manufacturers have agreed to pay Idaho more than $1.2 million to settle claims of improper pricing.

BOISE, Idaho (AP) -- Two drug manufacturers agreed to pay Idaho more than $1.2 million to settle claims of improper pricing.

The agreement with Alpharma USPD, Inc. and Purepac Pharmaceutical Co., now known as Actavis MidAtlantic LLC and Actavis Elizabeth, LLC, settles allegations they reported inflated or false wholesale prices.

Inflated prices for drugs reimbursed by federal- and state-backed Medicaid programs mean taxpayers end up paying more than they should.

The state attorney general's office says the settlement announced on Thursday "reimburses unfair costs to Idaho taxpayers."

Since 2005, Attorney General Lawrence Wasden's office says it's resolved five so-called "average wholesale price" cases with drug manufacturers, resulting in $5.1 million recovered.

Three similar cases naming 29 other drug manufacturers are pending.

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