A group of 17 New Hampshire legislators want the state’s Attorney General to pursue a criminal investigation into several drugmakers that sell antipsychotics after learning the state’s Medicaid program has spent increasingly large amounts on these medications for children.

In a May 6 letter, the legislators wrote that “civil actions merely appear to be write-offs as business expenses to drug manufacturers in cases like Vioxx, OxyContin, Neurontin, Paxil and those mentioned above. A criminal deterrent is needed to protect our children and others placed on powerful medications.” Their letter notes state spending rose from $300,000 in 2000 to $4 million last year.

Last week, the state announced it would receive $1.2 million as its share of a national settlement paid by Bristol-Myers Squibb over the marketing of its Abilify antipsychotic to treat children and dementia, which were unapproved uses. Nonetheless, the legislator who sparked the letter remains steadfast and wants Attorney General Kelly Ayotte to pursue litigation and charges against Lilly and others.

“I was concerned after reading about how much was being spent on children, when these drugs, which are very powerful, were never approved for them,” state legislator Al Baldasaro tell us. He adds that he received a letter from the AG last month saying the state remains “active” in investigating Medicaid fraud and several drugmakers. We have left messages for Jeff Cahill, who heads the state’s Medicaid unit, and and will update you with any reply.

Meanwhile, the $515 million settlement paid by Bristol-Myers over improper marketing is being distributed this month to the federal and state governments. Virginia, for instance, received $7.1 million, Florida was awarded $21.5 million, and $4.2 million was sent to New Jersey, according to a spokesman for the NJ Attorney General’s office.