Officials said Massachusetts’s share of the proceeds will go to the state’s Medicaid program, known as MassHealth, which provides medical care for the poor.
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New York Attorney General Eric Schneiderman said on Wednesday the New York State Medicaid Program will collect almost $7.5 million from AstraZeneca and a little more than $996,000 from Cephalon as part of the deal. “We will continue to work to hold drug manufacturers accountable for their conduct and ensure that they comply with federal and state laws”. This average price, which the manufacturer reports to the federal government, is known as the Average Manufacturer’s Price (AMP).
The money will be directed to the state’s Department of Human Services. “The greater the average price reported by the manufacturer, the greater the rebate the manufacturer must pay for that drug”, a news release states.
The complaint alleged that AstraZeneca and Cephalon falsely treated certain fees paid to wholesalers as “discounts”.
ALBANY, New York (AP) State authorities have reported a $54 million settlement with drug companies to close an investigation into Medicaid overcharges.
The settlement with AstraZeneca covered all 50 states, while Cephalon covered most states.
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AstraZeneca Pharmaceuticals, LP, a London and Delaware-based pharmaceutical manufacturer, has paid the states and the federal government $46.5 million to resolve allegations against the company, of which Missouri will receive $1.7 million. The Attorney General would like to thank whistleblower Ronald Streck for bringing this matter forward.
