Iowa is part of a 28-state settlement with a company that manages pharmacy benefits for businesses. Iowa Attorney General spokesman Bob Brammer says Caremark was supposed to be getting businesses better deals on drugs, but it didn’t turn out that way.
Brammer says it resulted in companies paying higher prices for prescription drugs instead of lower prices. Brammer says the states investigated and were concerned about the practice of encouraging doctors to switch to brand name drugs, even though the prices may’ve been higher, and it was unknown to doctors. Brammer says the company has agreed to pay the states some 41-million dollars.
He says a big chunk of the money will be used to benefit lower income, disabled, or elderly consumers. Brammer says Iowa was not a lead state, so they’ll get $370,000 for the benefit program and another $300,000 to pay for the cost of the investigation. Brammer says the settlement should help consumers down the road.
Brammer says companies or consumers who have this company should get lower drug prices in the future. Brammer says Caremark will be required to take numerous measures, such as informing patients and prescribers what effect a drug switch will have on a patient’s co-payment, and disclosing to prescribers any financial incentives.