GlaxoSmithKline settlement will bring millions to Mid-South - WMC Action News 5 - Memphis, Tennessee

Drug settlement will bring millions to Mid-South

Tennessee and Arkansas are expected to get millions dollars from GlaxoSmithKline. Tennessee and Arkansas are expected to get millions dollars from GlaxoSmithKline.

(WMC-TV) –Tennessee and Arkansas are expected to get millions dollars from GlaxoSmithKline.

The company agreed to pay $3 billion to the federal government and participating states because of allegations it illegally marketed and priced its prescription drugs.

What does this mean to you?

"It reinforces to the pharmaceutical industry that you have to play by the rules," said Bradley Phelps, Arkansas' chief deputy attorney general.

Phelps said the company marketed some of its drugs for treatments that weren't approved by regulators and didn't disclose safety information.

As a result, Arkansas is getting more than $2 million as part of the settlement. The state will also get matching funds from the federal government in this case through the Medicaid program. That money will increase Arkansas' share of the settlement to $7.6 million.

State leaders say all of it will go to Arkansas' Medicaid trust fund.

"The cost to administer the Medicaid program is getting more expensive and a few million dollars certainly helps alleviate that pressure," said Phelps.

Tennessee is getting $13 million; $5.5 million will go to TennCare while $7.8 million will go to the state government's finance and administration division.

In all, the federal government and the drug company agreed to a $3 billion settlement.

Copyright 2012 WMC-TV. All rights reserved.

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