LOS ANGELES (AP) -- A public employee's union has sued four companies for allegedly inflating the price of prescription drugs even as they claim to be in the business of lowering them.þþThe American Federation of State, County & Municipal Employees filed the suit against the four largest pharmacy benefit managers -- companies that negotiate lower prices with drug makers on behalf of health insurance plans.þþThe union claims the companies routinely inflate drug prices in California by secretly keeping rebates paid by drug makers to feature their products instead of passing those savings along to health plans.þþThe lawsuit was filed Monday in Los Angeles Superior Court. The union is asking that the companies stop the alleged illegal practices and pay health plans the profits they amassed over the past four years.þþNamed in the lawsuit were AdvancePCS, Medco Health Solutions, Express Scripts and Caremark Rx.þþThe lawsuit also charges that the PBMs, as they are known, receive kickbacks from drug companies to recommend higher-priced drugs rather than more affordable alternatives.þþThe unions also charge that the PBMs use inflated wholesale prices when figuring how much health plans owe for drugs purchased by the members. The prices are often slightly higher than the prices charged to pharmacies, resulting in a ``spread'' of about 2 percent.þþ``The organizations that were created to make prescription drugs more affordable are cutting inside deals with drug companies and driving up costs,'' AFSCME president Gerald McEntee said in a statement.þþThe companies said they had yet to see the lawsuit, but denied the allegations.þþ``Our interests are fully aligned with those of our clients who get the lion's share of discounts,'' said Stephen Littlejohn, spokesman for Express Scripts Inc.þþThe lawsuit is the latest in a series of criticisms of the for-profit PBMs. In January, nine states and the District of Columbia said they would organize a nonprofit group to purchase medicines to eliminate the PBMs they claim inflate drug prices and drive up health care costs.þþþ
Source: NY Times
