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Colorado nets nearly $3 million in drug rebate settlement

By SETH KLAMANN The Gazette 07/05/2022 | updated 3 years ago

A major drug manufacturer has reached a $233 million settlement with a coalition of states, including Colorado, for underpaying Medicaid rebates for more than seven years, the attorney general’s office announced Tuesday.

Colorado will directly net $2.9 million in the settlement, and nearly $3 million more will go to the federal government for its share of the state’s Medicaid program, according to a news release from the attorney general.

Nearly every state in the country, plus the federal government itself, Puerto Rico and Washington, D.C., will also receive some of the settlement funds, which will be paid over the next seven years. The agreement ends a lawsuit that alleged drug maker Mallinckrodt “illegally reduced the amounts it paid to the state Medicaid program,” Attorney General Phil Weiser said in a statement.

To avoid paying a rebate on a gel used to treatment autoimmune conditions and inflammation, Mallinckrodt treated the medication as newer than it was. The suit was triggered by a whistleblower complaint.

It’s not the first settlement Mallinckrodt has reached with Colorado and other states: In October 2020, Weiser’s office announced that the drug maker, which manufactures the generic painkiller oxycodone, would pay $1.6 billion as part of a national settlement for its role in the opioid epidemic. 

In this Oct. 7, 2019, file photo, Colorado Attorney General Phil Weiser speaks during a news conference in Denver.
(AP Photo/David Zalubowski, File)
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SETH KLAMANN The Gazette

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