A “middle-man” in the prescription drug industry has agreed to pay Iowa three-quarters of a million dollars and end what Iowa Attorney General Tom Miller calls “deceptive” business practices. Medco, the nation’s largest prescription benefit manager, is hired by insurance companies to manage prescription drug benefit plans. Medco has agreed to pay Iowa and 19 other states over 29 million dollars to settle a lawsuit. Iowa Attorney General Tom Miller says Medco often urged consumers to switch to a different prescription drug, but Medco kept part or all of the rebate offered by the drug company rather than letting the insurance company or the patient get the savings. Miller says that just isn’t right, and that’s what the attorneys general are trying to change. Miller says the lawyers want this settlement to be a model for other companies in the industry. Not only has Medco agreed to change its ways, it promises to publicly reveal more of its business records. Miller says the reform is probably worth a lot more than the 29 million dollar settlement Medco’s agreed to pay, since other “prescription benefit manager” companies may be pressured to follow suit. Iowa Department of Human Services director Kevin Concannon says Iowa’s Medicaid program did not contract with Medco, but the settlement with the company’s a welcome sign.Concannon says the changes forced on Medco will bring some light to an area of health care that’s been “shrouded in secrecy.”
