Rhode Island news | projo.com | The Providence Journal

« Update: Opponents make another bid to stop LNG project | Today | Sen. Reed to discuss Iraq at Roger Williams today »

September 8, 2006

R.I. recovers $59K from drug maker

The state of Rhode Island recently recovered nearly $59,000 in a settlement with pharmaceutical company GlaxoSmithKline Inc. that was part of a $161-million-dollar multi-state settlement.

Attorney General Patrick C. Lynch announced today that the settlement resolves allegations that the company improperly inflated the “average wholesale price” of its prescription drugs that were paid by government health plans.

Essentially, Medicaid and Medicare were overpaying for the prescription drugs from the pharmaceutical company, Lynch spokesman Michael J. Healey said.

Rhode Island’s settlement of $58,714.18 has been returned to the state’s Department of Human Services.

The drugs involved were Kytril and Zofran, injectible anti-nauseau drugs used in connection with chemotherapy treatments, according to Lynch’s office.

Today, Lynch said in a statement that this isn’t the first action the state has taken against this “pharmaceutical giant.”

Earlier this year, GlaxoSmithKline agreed to pay $14 million to 46 states, including $56,000 to Rhode Island, as part of a multi-state settlement related to accusations that the drug maker blocked generic versions of a popular antidepressant from being produced.

“And we will persist,” Lynch said, “as long as this corporation, or any other, violates our laws and tries to build its own profits at the expense of the Medicaid program, relied on by millions of poor people nationwide and thousands right here in Rhode Island.”

Posted by Kate Bramson at 1:05 PM | Permalink

September 8, 2006

R.I. recovers $59K from drug maker

Comments

Post a comment