Delaware News

State Auditor McGuiness Demands $24.5M in Overcharges Back From State Employees’ PBM, Express Scripts

Auditor of Accounts | Former Auditor of Accounts - Kathy McGuiness | News | Date Posted: Monday, June 21, 2021



DOVER, Del. – State Auditor Kathy McGuiness said today that Express Scripts Inc. should pay back the $24.5 million it overcharged the State of Delaware for its state employees’ prescription drug plan from 2018 through 2020.

“My special report found that Delaware paid three times the average drug inflationary price between 2018 and 2020 for state employee prescriptions,” McGuiness said, referencing her latest special report, “Lack of Transparency & Accountability in Drug Pricing Could be Costing Taxpayers Millions,” which was released Friday.

“While the national drug inflationary rate was 4.7 percent during those three years, Delaware paid a 20.1 percent increase in prescription costs,” she continued. “That’s an abuse of taxpayer dollars that should be returned to Delawareans.”

McGuiness said she was pleased to discover that House Bill 219, which passed the House unanimously Friday afternoon, is a comprehensive bill that addresses at least two of her special report’s recommendations.

“My team has been working on this project for two years,” McGuiness said, “and though we did the math on just one selected area showing how PBMs have taken advantage of Delawareans, it’s nice to know that we independently came to some of the same conclusions as legislators.”

McGuiness added that vague language in the Express Scripts contract with the state allowed the PBM to take advantage of the agreement.

“That’s why one of my report’s recommendations is for independent pharmacy experts to be included in contract negotiations with PBMs – so that they can provide the state’s legal team with expert guidance to ensure a sensible fee structure in the contract,” she said.

McGuiness reminded Delawareans that it is her job as state auditor to look for fraud, waste and abuse of tax dollars, and that she will continue to fight for accountable governance for them.

“I take the trust my constituents statewide have placed in me very seriously,” she said. “Imagine how much good that $24.5 million could do in the First State.”

The PBM special report can be located on the Auditor’s Office website found here.

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

###

Contact:

Alaina Sewell, Chief of Staff

302-857-3931

Alaina.Sewell@delaware.gov

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State Auditor McGuiness Demands $24.5M in Overcharges Back From State Employees’ PBM, Express Scripts

Auditor of Accounts | Former Auditor of Accounts - Kathy McGuiness | News | Date Posted: Monday, June 21, 2021



DOVER, Del. – State Auditor Kathy McGuiness said today that Express Scripts Inc. should pay back the $24.5 million it overcharged the State of Delaware for its state employees’ prescription drug plan from 2018 through 2020.

“My special report found that Delaware paid three times the average drug inflationary price between 2018 and 2020 for state employee prescriptions,” McGuiness said, referencing her latest special report, “Lack of Transparency & Accountability in Drug Pricing Could be Costing Taxpayers Millions,” which was released Friday.

“While the national drug inflationary rate was 4.7 percent during those three years, Delaware paid a 20.1 percent increase in prescription costs,” she continued. “That’s an abuse of taxpayer dollars that should be returned to Delawareans.”

McGuiness said she was pleased to discover that House Bill 219, which passed the House unanimously Friday afternoon, is a comprehensive bill that addresses at least two of her special report’s recommendations.

“My team has been working on this project for two years,” McGuiness said, “and though we did the math on just one selected area showing how PBMs have taken advantage of Delawareans, it’s nice to know that we independently came to some of the same conclusions as legislators.”

McGuiness added that vague language in the Express Scripts contract with the state allowed the PBM to take advantage of the agreement.

“That’s why one of my report’s recommendations is for independent pharmacy experts to be included in contract negotiations with PBMs – so that they can provide the state’s legal team with expert guidance to ensure a sensible fee structure in the contract,” she said.

McGuiness reminded Delawareans that it is her job as state auditor to look for fraud, waste and abuse of tax dollars, and that she will continue to fight for accountable governance for them.

“I take the trust my constituents statewide have placed in me very seriously,” she said. “Imagine how much good that $24.5 million could do in the First State.”

The PBM special report can be located on the Auditor’s Office website found here.

Learn about the Delaware Auditor’s Office at https://auditor.delaware.gov.

###

Contact:

Alaina Sewell, Chief of Staff

302-857-3931

Alaina.Sewell@delaware.gov

image_printPrint

Related Topics:  ,


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.