McKesson Fights $212M Ariz. Fine Over Drug Prices

Law360, New York (March 2, 2011, 4:37 PM EST) -- McKesson Corp. on Monday challenged a $212 million fine levied by Arizona's Medicaid agency over the wholesaler's alleged inflation of prescription drug prices, arguing that the agency lacks jurisdiction and authority to impose the penalty.

The Arizona Health Care Cost Containment System's attempt to enforce penalties and assessments on a nonprovider such as McKesson violates the Arizona Administrative Procedure Act, which gives the agency power to enforce penalties only on providers and noncontracting providers that submit claims for payment under Medcaid, according to a complaint for...
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