March , 2019

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CHICAGO, IL — Illinois Attorney General Lisa Madigan announced today that Illinois will receive $10 million in a 30-state settlement against McKesson Corporation to resolve allegations that the company inflated pricing data used for setting Medicaid reimbursement rates for a large number of prescription drugs. The inflated data caused the state’s Medicaid program to overpay for those drugs.

Reimbursement rates for pharmaceutical drugs dispensed to Illinois Medicaid beneficiaries are set by a standard known as the “Average Wholesale Price” (AWP), which is a benchmark used by most states including Illinois. Illinois alleged that McKesson, one of the largest drug wholesalers in the country, reported inflated AWP pricing data to First Data Bank (FDB), a publisher of drug prices, which meant that many of the AWPs used by Illinois to set reimbursement rates were inflated. 

“This company rigged the drug pricing system to boost its own earnings rather than report those costs fairly and accurately,” Madigan said. “Pricing cases like this one are critical to ensuring that Illinois and federal Medicaid funds are being spent in the interests of the people who need medical care.”

Today’s announcement of the states’ $151 million recovery was preceded by the federal government’s April announcement of a $187 million settlement. As part of both the state and federal agreements, Illinois will recover a total of more than $23 million for the state’s Medicaid program.

The suit against McKesson was filed in the United States District Court in New Jersey. To date, Madigan’s office has recovered more than $57 million from drug manufacturers that were alleged to have reported inflated AWP information to FDB and other publishers of drug prices.

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Welcome to CopyLine Magazine! The first issue of CopyLine Magazine was published in November, 1990, by Editor & Publisher Juanita Bratcher. CopyLine’s main focus is on the political arena – to inform our readers and analyze many of the pressing issues of the day - controversial or otherwise. Our objectives are clear – to keep you abreast of political happenings and maneuvering in the political arena, by reporting and providing provocative commentaries on various issues. For more about CopyLine Magazine, CopyLine Blog, and CopyLine Television/Video, please visit juanitabratcher.com, copylinemagazine.com, and oneononetelevision.com. Bratcher has been a News/Reporter, Author, Publisher, and Journalist for 33 years. She is the author of six books, including “Harold: The Making of a Big City Mayor” (Harold Washington), Chicago’s first African-American mayor; and “Beyond the Boardroom: Empowering a New Generation of Leaders,” about John Herman Stroger, Jr., the first African-American elected President of the Cook County Board. Bratcher is also a Poet/Songwriter, with 17 records – produced by HillTop Records of Hollywood, California. Juanita Bratcher Publisher

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