Two Final Settlements of a Class Action AWP Lawsuit
July 2, 2009
As a result of final settlements of the class action lawsuit regarding the average wholesale pricing (AWP) methodology used as a source for prescription drug pricing and pharmacy benefit manager (PBM) contracting, sponsors of group health plans may be able to claim damages (by July 9, 2009) and will soon have to evaluate PBMs' new prescription drug pricing methodologies. A Bulletin discussing this information is now available online:
July 2009 Bulletin, "Claiming Damages and Evaluating New Prescription Drug Pricing Methodologies in the Wake of Two Final Settlements of a Class Action AWP Lawsuit: Action Needed by July 9, 2009"
Plan sponsors should consider the following issues discussed in this Bulletin:
- Reviewing PBMs' temporary cost-neutral prescription drug pricing methodologies.
- Determining which long-term prescription drug pricing methodology will be the best financial alternative to AWP once it disappears.
- Developing innovative pricing methodologies.
- Negotiating performance guarantees with PBMs.
- Monitoring PBMs.