Mylan Inc. (MYL) and other drug makers have paid $124 million to settle charges that they underpaid their rebate obligations to state Medicaid programs, the U.S. Justice Department announced Monday.

Two Mylan subsidiaries paid a total of $118 million to settle allegations that they underpaid rebates to Medicaid for several of the company's drugs.

AstraZeneca PLC (AZN, AZN.LN) paid $2.6 million to settle charges that it underpaid Medicaid rebates on Albuterol, while Johnson & Johnson (JNJ) subsidiary Ortho-McNeil paid $3.4 million to settle claims that it underpaid Medicaid rebates for Dermatop.

The case originated in a federal court in New Hampshire.

Under the Medicaid Prescription Drug Rebate Program, drug companies pay quarterly rebates to Medicaid programs based on how much money the programs paid for the companies' medicines.

-By Brent Kendall, Dow Jones Newswires; 202-862-9222; brent.kendall@dowjones.com