Ky. Sues McKesson, First DataBank Over AWP Inflation

Law360, New York (July 25, 2011, 4:55 PM EDT) -- Kentucky sued drug distributor McKesson Corp. and First DataBank Inc. for allegedly conspiring to artificially inflate average wholesale drug prices, costing taxpayers millions of dollars in higher-priced Medicaid reimbursements, the state's attorney general said Monday.

McKesson, the nation's largest pharmaceutical wholesaler, and First DataBank, which reports drug prices to state Medicaid agencies for reimbursement purposes, inflated the published average wholesale prices for more than 1,800 brand name drugs, Kentucky Attorney General Jack Conway said.

The price inflation caused Kentucky's Medicaid program to pay tens of millions...
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