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Major PBM settles another US drug switching case

This article was originally published in Scrip

Executive Summary

Express Scripts, a large US manager of prescription drug benefits, and Cigna Corp's Cigna Life Insurance Company have agreed to pay a combined $27 million to settle a lawsuit filed by New York state which alleged that the companies encouraged doctors to switch patients to certain brand-name medicines primarily so they could retain bigger rebates from drug makers. In May, Express Scripts settled with 28 states over similar allegations for $9.3 million (Scrip Online, June 4th, 2008). In the settlement, Express Scripts does not admit to any of the assertions made in the suit. It said in a statement, "[We] did not conduct brand-drug therapeutic interchange programmes for the Empire Plan. The company also does not recommend switches to higher-cost drugs and does not accept pharmaceutical manufacturer funding for such programmes. Express Scripts' business practices already comply with essentially all the requirements of the settlement."

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