The Prescription Access Litigation (PAL) coalition filed suit against 11 drug companies in 2002 for artificially inflating the average wholesale price, or AWP, of certain drugs, including ones used to treat serious illnesses such as cancer and HIV. This week, PAL announced that the companies have agreed to pay $125 million to settle—82.5% of the amount will be used to compensate third-party payor’s claims, and the remaining 17.5% will be used for consumer claims. Here’s a list of the drugs involved, and after the jump is a quick guide to see whether you’ll qualify for a claim, pending the judge’s approval of the settlement.
According to PAL:
Medicare Part B recipients, health plans and individuals who paid for these drugs but were not on Medicare will be eligible to receive payments from this settlement once the Court finally approves it. The following types of individuals and entities will be eligible:
- Patients on Medicare Part B who paid a percentage (i.e. not a fixed copayment, but 10%, 20%, etc.) of the cost of one of the drugs in the case, taken between Jan. 1, 1991 and Jan. 1, 2005.
- Health Plans and other Third Party Payors who paid all or part of a Medicare Part B recipient’s percentage co-insurance for one of the drugs.
- Individuals not on Medicare Part B who paid all or part (a percentange) of the cost of one of the drugs taken between Jan 1, 1991 and March 1, 2008.
- Health plans and other Third Party Payors who paid all or part of the cost of one of the drugs taken by an individual not on Medicare part B between Jan 1, 1991 and March 1, 2008.
“11 drug companies settlement AWP allegations for $125 Million” [Prescription Access Litigation]