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tci Medicare Compliance & Reimbursement - 2003 Issue 11

Pharmaceuticals: NO RELIEF ON AWP SCRUTINY

Pharmaceutical companies across the country are coming increasingly under the gun as state attorneys general nationwide take them to task for allegedly ripping of Medicaid and Medicare by manipulating reported drug prices. In the latest move, Connecticut AG Richard Blumenthal says he plans to sue seven drugmakers for illegally playing fast and loose with the “average wholesale price,” a figure used to calculate Medicare and, in most states, Medicaid, reimbursement. Blumenthal maintains that the defendant companies’ artificial inflation of the AWP forced the state to pay far too much for their products. He says that providers are...

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