Drug Switching – New York Settlement
Express Scripts allegedly committed misconduct while managing pharmacy programs.
Express Scripts and CIGNA Life Insurance Company agreed to pay New York State $27 million to resolve claims relating to a drug switching program. The state alleged that Express Scripts, which subcontracted through CIGNA as the pharmacy benefit manager for more than 1 million active and retired New York State employees and their dependents, made misrepresentations regarding the amount of discounts it could obtain, inflated prices for generic drugs, engaged in drug switching programs to get rebates from manufacturers, and diverted those rebates to itself instead of to the state. Express Scripts and CIGNA did not admit any wrongdoing and did not disclose how much of the settlement each paid. In May 2008, Express Scripts settled similar claims with 28 states and the District of Columbia (see ESHC instance, “Drug Switching – National Settlement”).
- Misconduct Type
- Consumer Affairs
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement Announcement
|Express Scripts Holding Company||Undisclosed|
Drug Switching – National Settlement
Express Scripts Holding Company