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ATTORNEY GENERAL BIDEN PROTECTS ACCESS TO AFFORDABLE MEDICATION

Consumer Protection | Department of Justice | Department of Justice Press Releases | Family | Date Posted: Tuesday, May 27, 2008



Wilmington, DE – Today Attorney General Beau Biden announced that Delaware consumers and the
State will receive at least $165,000 following an investigation involving consumer protection claims
against Express Scripts Inc., a nationwide pharmacy benefits management company. As a result of the
investigation, Express Scripts will make considerable changes to its business practices and pay $9.3
million to 28 states and the District of Columbia and $200,000 to patients who incurred expenses related
to certain switches between cholesterol-controlling drugs.
“Today, we’re holding the pharmaceutical industry accountable for deceptive and illegal trade
practices that have cost Delawareans money,” Attorney General Biden stated. “The Delaware
Department of Justice will do everything within its power to ensure fair competition and lower prices for
consumers.”
Delaware will receive $100,000 which will be used to provide prescription medications to lowincome,
disabled and elderly residents, promote lower drug costs, and educate consumers about cost
differences among medications. In addition, Express Scripts will pay $65,000 to the Delaware
Consumer Protection Fund to reimburse the State for costs associated with its investigation.
The Delaware Department of Justice alleges that Express Scripts engaged in deceptive business
practices. In particular, Express Scripts may have overstated the cost benefits of switching to certain
preferred medicines. Moreover, Express Scripts did not clearly disclose that rebates accrued from drug
switches would be earned by Express Scripts.
Express Scripts is required under the agreement to make several changes, including:
• not encouraging drug switches that cost more, have only minimal savings, are for drugs not
subject to market competition, or are away from drugs whose patents are about to expire
• not switching the medication of the same patient twice in a two-year period
• disclosing Express Scripts’ financial incentives for drug switches, including rebates paid to
Express Scripts by drug companies, the promotional support provided by drug manufacturers,
and the actual cost savings of drug switches
Express Scripts and other pharmacy benefits management companies enter into contracts with
employer health plans to process prescription drug claims, negotiate volume discounts with drug
companies and retail pharmacies, and dispense drugs through mail order pharmacies.
# # #

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ATTORNEY GENERAL BIDEN PROTECTS ACCESS TO AFFORDABLE MEDICATION

Consumer Protection | Department of Justice | Department of Justice Press Releases | Family | Date Posted: Tuesday, May 27, 2008



Wilmington, DE – Today Attorney General Beau Biden announced that Delaware consumers and the
State will receive at least $165,000 following an investigation involving consumer protection claims
against Express Scripts Inc., a nationwide pharmacy benefits management company. As a result of the
investigation, Express Scripts will make considerable changes to its business practices and pay $9.3
million to 28 states and the District of Columbia and $200,000 to patients who incurred expenses related
to certain switches between cholesterol-controlling drugs.
“Today, we’re holding the pharmaceutical industry accountable for deceptive and illegal trade
practices that have cost Delawareans money,” Attorney General Biden stated. “The Delaware
Department of Justice will do everything within its power to ensure fair competition and lower prices for
consumers.”
Delaware will receive $100,000 which will be used to provide prescription medications to lowincome,
disabled and elderly residents, promote lower drug costs, and educate consumers about cost
differences among medications. In addition, Express Scripts will pay $65,000 to the Delaware
Consumer Protection Fund to reimburse the State for costs associated with its investigation.
The Delaware Department of Justice alleges that Express Scripts engaged in deceptive business
practices. In particular, Express Scripts may have overstated the cost benefits of switching to certain
preferred medicines. Moreover, Express Scripts did not clearly disclose that rebates accrued from drug
switches would be earned by Express Scripts.
Express Scripts is required under the agreement to make several changes, including:
• not encouraging drug switches that cost more, have only minimal savings, are for drugs not
subject to market competition, or are away from drugs whose patents are about to expire
• not switching the medication of the same patient twice in a two-year period
• disclosing Express Scripts’ financial incentives for drug switches, including rebates paid to
Express Scripts by drug companies, the promotional support provided by drug manufacturers,
and the actual cost savings of drug switches
Express Scripts and other pharmacy benefits management companies enter into contracts with
employer health plans to process prescription drug claims, negotiate volume discounts with drug
companies and retail pharmacies, and dispense drugs through mail order pharmacies.
# # #

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.