FACT OR FICTION: Pharmaceutical Industry Recovery Program Settlement
The following has been reviewed and shared by LVBCH’s Pharmacy Consultants, AECRx:
We have heard from a few LVBCH members about how they could be eligible to participate in a $600 billion pharmaceutical industry overcharging recovery program. You may have even seen a post like this on social media:
First and foremost, there is NOT an actual settlement.
The FTC has been investigating the Big 3 and other PBMs around insulin pricing. You can see the actual documentation here.
Second, to the extent the FTC reaches a settlement with the PBMs plan sponsors will need to gather data either from their PBM and/or follow the settlement guidelines to receive their money. There are no settlement guidelines because there is no such settlement at this point. Signing up to have a third party do the filing for you and take a portion of the settlement owed to your plan does not appear to be the best action at this point. For example, if the settlement requirements are to share copies of 5500 showing the total head count and they will make a payment based on enrollment, this would be a simple action and not in the best interest of plan participants.
Finally, keep in mind the FTC can easily drop this investigation with no findings. Here is some nice color commentary from a corporate firm, not a personal injury firm.
If and until a settlement is finalized, it does not appear to be in the best interest of plan sponsor sign up for anything. We will be monitoring the case and will keep you posted.
UPDATE
An update on these solicitations-
Plaintiff’s counsel in the ongoing pharmaceutical litigation was successful in moving a federal judge to issue an order barring Pearl Logic and IOA from interfering with the distribution of funds in these lawsuits.
Plaintiff’s alleged that these companied engaged in “false and misleading communications” to class members.
Pearl Logic, IOA, and other entities involved in this have been ordered to provide the court with:
- the names of all people/entities who they contacted regarding the litigation
- all of their marketing efforts and the identities of everyone associated with those marketing efforts, and all their communication including social media posts, about these settlements
These entities are ordered to:
- post corrections for all of the false/deceptive/misleading statements and material omissions about the litigation
- state in their communication that the claims process has not yet begun and that a 3rd party service isn’t necessary to participate in settlement, and no-cost assistance will be made available from the Claims Administrator
Any employer that entered a contract with the entities listed in the court ruling may rescind that contract, and any opt-out requests sent to the lead plaintiff by employers is deemed invalid.
Please direct clients to this legitimate website for information on these settlements and use the registration link to get authorized updates on these claims: