Madigan secures $6M to pay Medicaid bills

Ashley Stinnett Jul. 28, 2009, 3:26pm


SPRINGFIELD, Ill. (Legal Newsline) - Illinois Attorney General Lisa Madigan has agreed to a more than $6 million settlement with Deerfield-based Baxter Healthcare Corporation, Inc., over allegations the company intentionally raised prices when charging state's Medicaid program.

Madigan filed a lawsuit in 2005 targeting Baxter and other drug companies over allegations the manufactures inflated the Average Wholesale Price (AWP) of certain products, which the Illinois Medicaid program uses to reimburse its patients.

The lawsuit alleges that the inflated prices have resulted in the overpayment of drug costs by the State of Illinois.

"This is the second settlement this month with a drug company that has engaged in unfair conduct," Madigan said.

The $6.8 million in settlement will be deposited into the State of Illinois General Revenue Fund, which will pay Medicaid bills from lower income patients.

The original suit continues against more than 36 other companies.

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