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CNMI to get $15K for drug overcharges
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Posted on Mar 01 2005
Attorney general Pamela Brown yesterday said that the CNMI government would receive some $15,000 in reimbursement for Medicaid spending over an anti-anxiety drug.
Several states earlier filed a lawsuit against New York City-based Bristol-Myers Squibb, which manufactures the drug BuSpar, for allegedly violating federal antitrust laws. The suit, however, resulted in a settlement agreement.
“Bristol-Myers Squibb fended off competition by filing new patent on BuSpar with the U.S. Food and Drug Administration. Had the scheme gone unchallenged, it would have prevented the generic drug from entering the market for at least another 30 months,” Brown said.
The settlement, though, did not originally allot money for reimbursement to Medicaid agencies in the insular areas, including the CNMI.
The original settlement only made CNMI consumers of BuSpar from Jan. 1, 1998 to Jan. 31, 2003 eligible for restitution if they filed a claim, prompting Brown to protest the terms of the agreement.
“Not only does the CNMI incur Medicaid expenses for BuSpar and other prescription drugs, but the CNMI also pays Medicaid at a disproportionate level relative to the states,” Brown said.
The protest led to a compromise agreement that entitled the CNMI government reimbursement of some $15,000. The governments of Guam, American Samoa, and the U.S. Virgin Islands would also receive similar amounts.
“Curbing Medicaid expenses is a huge priority for this administration and every little bit we can save helps,” she said.
