AWP Settlements

Ovper the last two years, 15 drug manufacturers have settled lawsuits that alleged they, and very every drug manufacturer in the U.S. marketplace, had participated in a scheme to inflate the Average Wholesale Price (AWP) Index maintained by First Data Bank and MediSpan. The suits alleged that the pricing models these institutions employed artificially inflated prices on average of 5% from 2001 to 2005.

While some drug manufacturers have already settled the suits against them and paid out claims there are a significant number of actions still pending. Filing is complicated, time consuming and a very exacting process. While failure to comply with the requirements will likely result in forfeiture of your claims, MCAG’s AWP Settlement Management service ensures that you are not only filing for all of your eligible dollars but that your claims are protected throughout the process.

McKesson AWP Settlement:

The McKesson AWP Settlement is closing rapidly. Plan sponsors must move immediately to take advantage of their opportunity to claim part of the $350 Million dollar judgment. The deadline for claim filing is July 9th, 2009. In order to participate clients must contact MCAG no later than 7/3/2009.

All Employee Benefit Plan sponsors may claim their portion of the judgment and file claims on behalf of their plan participants that paid coinsurance on drug claims.

Understanding What Happened:

Companies thought they were paying…

AWP Price – Discounted 17% with an additional $2.75 dispensing fee and $1.00 administrative fee.

They were actually paying…

AWP Price – Plus an additional 5%, then discounted 17% with the 2.75 dispensing fee and $1.00 administrative fee tacked on.

The drug manufacturers inflated the AWP Pricing model by 5% at every pharmacy and prescription drug filler in the country, receiving an extra, unreported and unapproved fee on nearly every drug dispensed.

MCAG’s AWP Settlement Management Service ensures an independent review of your historical claim records, a full accounting of your claim eligibility and the fulfillment of all settlement requirements in the current can developing class actions.