Express Scripts, a leading pharmacy benefits manager, and health insurer Cigna have settled a New York state lawsuit over alleged drug switching for a combined $27 million.
The 2004 lawsuit related to a pharmacy benefits management contract between the New York state employee health plan, called the Empire Plan, and the two companies. The lawsuit alleged that Express Scripts, which contracted through Cigna as the pharmacy benefit manager for plan members, engaged in drug switching, or recommending patients switch to higher-cost drugs to boost profits.
In the settlement, the companies didnt admit to any wrongdoing. St. Louis-based Express Scripts said in a statement that it doesnt engage in such practices and doesnt accept pharmaceutical funding for such programs. In May, Express Scripts reached a similar settlement with 28 other states for $9.5 million. -- by Rebecca Vesely