State sues two companies for alleged inflated drug prices

HONOLULU (HawaiiNewsNow) - The State of Hawaii has filed a complaint against a drug wholesaler and drug data publisher as part of a continuing effort to recover from allegations that the State's Medicaid system was overcharged for prescription drugs.

On Wednesday, Attorney General Mark Bennett announced the state is suing McKesson Corporation, a pharmaceutical products wholesaler, and DataBank, Inc, a pricing information publisher for pharmaceutical products.

In a previous related lawsuit in October, the State recovered more than $82 million from over 40 prescription drug manufacturers.

In the lawsuit, the State alleges that the defendants violated various statues and common law in connection with the reporting and publication of average whole prices for specific brand-named pharmaceutical products.

The State says the defendants allegedly inflated the AWPs published by First DataBank for certain pharmaceutical products although there was no increase in actual prices retail providers paid to obtain them.

In turn, the State alleges it overpaid Medicaid providers when reimbursing them based on the alleged inflated AWPs.

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