tci Medicare Compliance & Reimbursement - 2004 Issue 33

Enforcement Watch: Big Apple Says AWP Is More Than It Can Chew

Allegations could signal another round of pharmaceutical settlements.States looking for a big boost to their Medicaid budgets may have found their new battle cry: Average Wholesale Price.  New York City spearheaded the effort in a complaint filed Aug. 5 against 44 pharmaceutical companies. The city claims drugmakers overcharged the New York Medicaid program millions by inflating the AWP and underpaying rebates on hundreds of different drugs. "Many of the claims alleged in this complaint have been substantiated by numerous federal investigations, including Congressional investigations, and by Federal criminal and civil actions against some of the defendants...

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