Express Scripts, Cigna agree to $27M "drug switching" settlement

Pharmacy benefits manager Express Scripts and health plan Cigna have settled a New York state lawsuit over alleged "drug switching" for a total of $27 million. The suit, which was filed in 2004, involved a pharmacy benefits management contract between the New York state employee health plan, Express Scripts and Cigna. In the suit, the state alleges that Express Scripts--serving as the pharmacy benefit manager for plan members--recommended that patients switch to higher-cost drugs to boost its profits. Under the terms of the settlement, Express Scripts said that it doesn't engage in drug switching, nor does it accept pharmaceutical funding for such programs. However, other state governments believe it does. In May, Express Scripts settled with 28 other states for $9.5 million.

To learn more about the settlement:
- read this Modern Healthcare piece

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