YEA WISCONSIN

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Wisconsin Sues 20 U.S. Drug Manufacturers

 

Thu Jun 3, 1:58 PM ET

 

 

By TODD RICHMOND, Associated Press Writer

MADISON, Wis. - Wisconsin Attorney General Peg Lautenschlager filed a

lawsuit Thursday against 20 major drug manufacturers across the nation for

allegedly inflating prices, violating the state's wholesale pricing laws and

driving up costs for health care programs for the poor and other drug buyers

 

 

 

 

 

 

According to the lawsuit, filed in Dane County Circuit Court, the

manufacturers " embarked on an unlawful scheme " at least as early as 1992 to

distort the drug pricing system.

The suit seeks to force the manufacturers to stop the practice and set up a

restitution program for citizens, private payers and state health programs.

It also seeks forfeitures of up to $10,000 per violation if the court finds

the violations were against senior citizens.

Coalition of Wisconsin Aging Groups executive director Tom Frazier said the

allegations in the lawsuit have added to senior citizens' anger over high

prescription drug prices.

" Seniors, I think, are outraged about it. The marketing, the deception, the

Canadian stuff, " Frazier said, referring to U.S. Food and Drug

Administration (news - web sites) warnings not to buy cheaper Canadian drugs

because they may be unsafe.

" Now we're going to throw price gouging and illegal pricing on top of that.

What are we going to find out next that they're doing to keep older people

from getting the prescription medicine that they need?, " asked Frazier.

Manufacturers named in the lawsuit include Pfizer Inc., Johnson & Johnson,

Inc. and Bayer Corp.

Pfizer spokesman Bryant Haskins declined to comment, saying he hasn't seen

the lawsuit. Bayer and Johnson & Johnson officials didn't immediately return

messages from The Associated Press Thursday.

The lawsuit alleges the manufacturers inflated prices for their drugs,

deeply discounted the published wholesale prices for some customers and kept

the discounts secret, according to the lawsuit. The purpose was to increase

the manufacturers' sales, profits and market shares.

The plan enabled drug providers in Wisconsin's Medicaid program to charge

the state false prices and interfered with the state's ability to set

reasonable reimbursement rates for the drugs, the lawsuit said.

" Wisconsin's Medicaid program has paid more for prescription drugs than it

would have paid if defendants had published their true wholesale prices, "

the lawsuit said.

The Medicaid program provides medical benefits, including prescription drugs

to low income and disabled people. The program is jointly funded by the

state and the federal government. It reimburses physicians and pharmacies

for drugs and other services they provide.

The inflated prices also caused some Medicare participants to pay a higher

copay for their drugs, the lawsuit said.

Medicare is a federal insurance program that covers senior citizens and some

disabled people. It covers some prescription drugs.

More than 700,000 Wisconsin residents are entitled to reimbursement under

the section of Medicare that covers their medicines, the lawsuit said.

The attorneys general of 13 other states already have sued drug

manufacturers for allegedly breaking wholesale pricing laws. Those suits are

still pending.

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On the Net:

Wisconsin Department of Justice (news - web sites): http://www.doj.state.wi.us/