NU Online News Service, Dec. 11, 2003, 10:06 a.m. EST – The U.S. Attorney’s office in Philadelphia has accused Medco Health Solutions Inc., Franklin Lakes, N.J., a pharmacy benefit manager, of using an $87.4 million kickback to win a PBM contract from an unnamed health insurer in 2001.[@@]
The officials have added the allegations to other allegations included in a whistleblower action that incorporates one whistleblower suit filed by pharmacists in 1999 and a second whistleblower suit filed by a doctor in 2000.
Oxford Health Plans Inc., Trumbull, Conn., has disclosed that it is the firm named in the amended complaint.
Oxford reported that it would be receiving a total of $87.4 million in payments from Medco in an annual financial statement that Oxford filed with the U.S. Securities and Exchange Commission in February 2002.
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Oxford said it had entered into a 5-year agreement with Medco that began Jan. 1, 2002.
Medco agreed to pay $4.5 million to Oxford to “offset systems and other costs associated with implementation of designated services,” Oxford reported.
Medco also agreed to pay Oxford another $82.9 million over 5 years in exchange for Oxford providing historic claims information, current claims information, consulting services and other services, Oxford told the SEC.