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Fourth drug company settles suit with state over Medicaid charges

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Hudson Star Observer
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A fourth drug company has agreed to settle allegations that it overcharged the state for medicines given to Medicaid patients.

The Justice Department said Tuesday that Baxter Health care has agreed to pay more than $1 million.


The law requires drug makers to charge Medicaid its lowest possible prices, and Baxter is among those accused of charging more.

Baxter does not admit wrongdoing and the settlement lets the company stay in the Medicaid program.

Similar cases are pending against 32 other drug manufacturers.

So far, companies have agreed to pay $4 million to reimburse Medicaid and pay the state's legal fees.

Last week, a jury ordered a subsidiary of Pfizer to pay at least $144 million to the state, for inflating drug prices in 1.4 million transactions to Medicaid patients.