Attorney General Jon Bruning on Thursday said Nebraska has received $3.5 million as part of two separate global settlements with drug company Merck.The agreements with Merck resolve allegations of the company failing to pay rebates because of state Medicaid Programs under the Federal Medicaid drug rebate law.

The settlements involved 49 states, the District of Columbia and the federal government, and totaled $649 million.

Most of Nebraska’s settlement will go to the Department of Health and Human Services, which runs the state’s Medicaid program.

“This is a big recovery," Bruning said. "We’re pleased to have recovered $3.5 million for Nebraska’s taxpayers."

Merck manufactures the drugs Zocor, Vioxx and Pepcid. Drug manufacturers that supply products to Medicaid recipients are required by the Federal Medicaid Drug Rebate law to give the Medicaid programs the benefit of the “best price” available for those products. The manufacturers are required to file best price information with the Centers for Medicare and Medicaid Services.

The states alleged Merck did not report the correct best price for Zocor, Vioxx and Pepcid when it failed to include discounts of up to 92 percent that the company gave to certain hospitals for the same drugs.