Arizona suing 42 drug companies over "inflated" prices

[Thom Little]

The state is suing 42 drug companies, claiming they artificially inflated their wholesale prices and cost Arizonans and health insurers tens of millions of dollars, state Attorney General Terry Goddard announced Wednesday.

The complaint charges that the drug companies charged twice, sometimes three times and more the going rate for various drugs. Specifically, the lawsuit charges the companies with violating the state's consumer protection and racketeering laws.

"Many times people have been forced to choose between expensive medicines or food and housing," Goddard said. "What these drug manufacturers have done is outrageous. Arizona residents have been cheated out of millions of dollars."

Goddard said Arizonans have been hurt by the jacked up prices because individuals and insurers pay a percentage of the inflated cost. Insurers, including Medicare, use an average wholesale price to determine the amount they'll reimburse doctors and pharmacies. Individuals enrolled in the state's "Copper Card" prescription drug discount program save a varying percent off average wholesale drug prices.


http://hosted.ap.org/dynamic/stories/A/AZ_PRICE_FRAUD_AZOL-?SITE=VARIT&SECTION=US&TEMPLATE=DEFAULT&CTIME=2005-12-07-13-44-40

[jbnow]

1. Good for them. Get drug companies for

racketeering and then go after credit card companies for usury.

[catmother]

2. good for terry goddard -- he's a dem you know -- he was mayor

of phoenix when i moved here.

[NoodleBoy]

3. Goddard rocks, saw him speak the other day, really took the republican leg

to task. People here in AZ really did themselves horrifically bad when they voted for that nut Symington over him for Gov. It's good to see him back in the fray.