On March 30, a District Court in Massachusetts made a final judgment to approve a class-action setlement involving First Databank and Medi-Span, two major publishers of drug pricing information.
The two firms were found to have inflated average wholesale prices (AWP) for some 400 brand-name drugs. AWP is the primary benchmark for most PBM discounts. Under the settlement, First Databank and Medi-Span agreed to roll-back the AWP on all drugs to a uniform 120% of the wholesale acquisition cost, effective Sept. 26.
With significant contract implications (and savings!) for benefits pros to consider, you can read a detailed summary of the ruling here and see EBN's coverage on taking advantage of PBM savings as a result.
Monday, April 13, 2009
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You should check the settlement terms and you will find the AWP adjustment applies to about 1442 NDCs. FDB and Medi-Span independent of the settlement announced they will adjust AWPs for all other NDCs who's markup is greater than 1.20 (about 15-20K NDCs).
Also, FDB was alleged to have inflated AWPs and Medi-Span was alleged to have continued reporting them after the SEC divested the FDB/Medi-Span merger (Medi-Span was owned by FDB during the alleged activity).
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