Attorney General Pam Bondi News Release
July 27, 2012
Contact: Whitney Ray
Phone: (850) 245-0150

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Attorney General Bondi Announces that McKesson Corporation Must Pay States More Than $151 Million in Medicaid Fraud Case

TALLAHASSEE, Fla.–Attorney General Pam Bondi announced today that Florida will receive more than $11.4 million as part of a global settlement totaling more than $151 million with McKesson Corporation, one of the largest drug wholesalers in the country. The settlement resolves allegations that McKesson violated the Federal False Claims Act and various state false claims acts by reporting inflated pricing data for prescription drugs, causing the state Medicaid programs to overpay McKesson.

“Inflating pricing data that results in overpayment by the Medicaid program defrauds taxpayers,” stated Attorney General Pam Bondi. “I am pleased we were able to recover more than $11.4 million for Florida.”

The complaint alleges that McKesson inflated average wholesale pricing (AWP) data to First Data Bank, a publisher of drug prices, thereby inflating many AWPs that are used by Florida to set reimbursement. AWP is the benchmark used by most states to set pharmacy reimbursement rates for pharmaceuticals dispensed to Florida Medicaid beneficiaries.

The Attorney General’s Medicaid Fraud Control Unit investigates and litigates cases involving false claims for payments that are submitted to the Florida Medicaid Program. To view the settlement agreement, please click here:$file/12-07-26+Fully+Executed+Settlement+Agreement.pdf