NEWS> New York State Sues Two Pharmaceutical Firms While Charlie Norwood Revive Patient Rights Legislation

  • From: Gleason Sackmann <gleason@xxxxxxxxxxxxxxx>
  • To: NetHappenings <nethappenings@xxxxxxxxxxxxx>
  • Date: Tue, 18 Feb 2003 08:47:34 -0600

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From: "David P. Dillard" <jwne@xxxxxxxxxxxxxxxxxxxxx>
Sent: Sat, 15 Feb 2003 06:33:09 -0500 (EST)

New York sues 2 drugmakers
AG Eliot Spitzer alleges Glaxo, Pharmacia pocketed difference of drug
reimbursements; Aventis next.
February 13, 2003: 11:42 AM EST
<http://money.cnn.com/2003/02/13/news/companies/drug_suit.reut/>

NEW YORK (CNN/Money) - New York Attorney General Eliot Spitzer sued two
drugmakers -- GlaxoSmithKline and Pharmacia -- in state court, charging
them with commercial bribery, getting kickbacks and consumer fraud. A
third company, Aventis, has been notified that a suit will be filed
against it also, CNNfn confirmed Thursday.

The lawsuit claims the drugmakers offered doctors and pharmacies discounts
on medications, while charging the government and insurance companies
higher prices and pocketing the difference through a practice called
average wholesale pricing (AWP).

Using AWP, the suit alleges, the pharmaceutical firms set a price on drugs
that the government and insurance companies would use to reimburse doctors
and pharmacies for medications they buy, but the firms would then offer
the medications to doctors and pharmacies at a discount and keep the
difference, according to the New York Times.

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Wednesday, Feb. 5, 2003
Lawmaker Revives Patients' Rights Effort
By JIM ABRAMS Associated Press Writer
<http://news.findlaw.com/ap/o/1500/2-5-2003/20030205161502_77.html>

WASHINGTON (AP) - Rep. Charlie Norwood on Wednesday revived the patients'
rights legislation he has been proposing since he came to Congress eight
years ago, but acknowledged potential insurmountable differences over the
liability of HMOs.

Norwood, a Georgia Republican often at odds with his own party on this
issuer, also said passage could be difficult with lawmakers already
focused on two other health care issues - prescription drug coverage for
older Americans and the high costs of malpractice insurance.

Norwood's measure would ensure that patients in managed care programs have
access to emergency and pediatric care and prescription drugs. It would
guarantee a patients' access to information, protect the doctor-patient
relationship and give every patient the right to an independent review
when the doctor and insurance company disagree on treatment.

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  • » NEWS> New York State Sues Two Pharmaceutical Firms While Charlie Norwood Revive Patient Rights Legislation