ALBANY, N.Y. (AP) -- State Attorney General Eric Schneiderman says New York will get $64 million in restitution from drug distributor McKesson Corp. for Medicaid overbilling as part of a $151 million, 30-state settlement.
The settlement resolves claims that McKesson reported inflated pricing data for more than 1,400 brand-name prescription medications to First Data Bank, which publishes prices used to set payment rates for drug reimbursement. Claims covered several years ending in 2009.
A federal settlement with McKesson was reached in April.
The data relates to the Average Wholesale Price benchmark used by most states, including New York, to set drug payment rates.
The drugs included Adderall, Allegra, Ambien, Lipitor, Prozac and Ritalin.
McKesson says the claims are without merit, that it does not set AWPs and settled to avoid the uncertainty of litigation.
