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PBM quickie: Feds join lawsuit against Medco

The Feds have backed two whistleblower suits against Medco.  The allegations claim that Medco used a variety of techniques to favor Merck (which owned Medco at the time) and was paid $430m in 2001 to switch scripts from Merck’s competitors. Back in March 2003, Milt Freudenheim in the New York Times highlighted Medco’s income from rebates (some $1 billion a year) and its ability to move share towards Merck’s drugs.

PBMs have for a long time made money from rebates, and have also been very economical with the truth to their health plan customers about how much they got from pharma companies for those rebates and how much was passed through to their customers.  However, during the late 1990s their performance seemed very ineffective in keeping down the cost of drugs for their plan and employer clients, either in reducing their usage or by holding down their unit price. For more of my take on PBMs see this post.

Interestingly enough, Medco’s stock price went up over a dollar in the latter part of the afternoon after 2pm when the confirmation (of somewhat old news) came out that the US Attorney’s office was joining the suit.

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Yvonne BesykLaura GomezLaura A. AllenArpita ChattopadhyayTerry Anderson Recent comment authors
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Yvonne Besyk
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I have only been with Medco 3 months. Prior, my condition was well controlled and better than it had been in 10 years. Due to medication delays, claim denials despite having 4 separate preauthorizations/over-limit appeal approvals, changing demands (sometimes several times within one phone call), etc., years of progress is gone. Flare-up of condition known as Trigeminal Neuralgia (known as the suicide disease) due to Medco delays and poor processes, has caused severe pain, unplanned medical procedure to control flare-up (unseccessful), time off work getting into short-term leave, anxiety, need for two additional therapies, additional medications and counseling, impending self-pay… Read more »

Laura Gomez
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I have not taken a very important prescription for three weeks because Medco refuses to authorize filling it despite remaining refills and doctor’s orders staying the same. This is by far not the first time this has happened. I would like to participate in a lawsuit.

Laura A. Allen
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Laura A. Allen

Please, please , Please , Help me get in on this class action suit because I have almost had a heart attack over the stress that Medco put me under and the cruelest that any dirty rotten company I have ever seen I’d like to know how the people who run this company can sleep at night and do some of them are calling themselves Christians? I could not do this to anyone.! I was on a pain medication thatis a common cross-over for cancer patients. Nothing else has worked. The only way I can describe this pain is ats… Read more »

Arpita Chattopadhyay
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Arpita Chattopadhyay

This is the same that happened to me. My doctor gave me a Keppra prescription and when I went through Medco, they converted it to a generic drug saying its FDA approved. I am frustrated with them and their switching medications.

Terry Anderson
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Terry Anderson

I myself would like to join a classaction lawsuit against Medco. I was forced to go to mail order with Medco after they sent me a letter stating they would only cover 3 months worth of long term medications at a local pharmacy. When I did switch to mail order it was a complete headache. They switched my EPILEPSY medication to generic when the prescription was written for brand names. Now they stop almost all coverage on them. For example my DILANTIN medication for a three month supply through medco is approxitmently $700.00. In January of 2010 they covered a… Read more »

Susan
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Susan

I would like to join in a class action lawsuit against Medco. I have suffered month after month problems receiving a controlled substance Adderall. I do not even use Medco and go to Sams Club now. They could never correctly deliver the drug. Presently, I am being denied Seroquel XR 300mg until June 2, 2010. I have seven tablets in my possession. I am on the phone with a pharmacist who is telling me to say: that I did not receive the full amount. I will not say that as I did not count the amount in the bottle. My… Read more »

Roger Matlin
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Roger Matlin

CLASS ACTION LAWSUIT VS. MEDCO HEALTH SOLUTIONS (MEDCO)
Please contact:
Roger Matlin
rmipf@hotmail.com
Medco settled $155,000,000 with Federal Gov in 2006. This legal action is for individuals (not Feds). Don’t let Medco continue to hurt you and your family.

Roger Matlin
Guest
Roger Matlin

CLASS ACTION LAWSUIT VS. MEDCO HEALTH SOLUTIONS (MEDCO)
Please contact:
Roger Matlin
rmipf@hotmail.com
Medco settled $155,000,000 with Federal Gov in 2006. This legal action is for individuals (not Feds). Don’t let Medco continue to hurt you and your family.

Roger Matlin
Guest
Roger Matlin

Seeking people to join class action against Medco Health Solutions (Medco) for changing prescriptions, modifying doctor prescriptions and shorting medications. Please contact:
Roger Matlin
rmipf@hotmail.com
Don’t allow Medco to continue injuring and/or killing people to make a few extra dollars.