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NY Sues St. Louis-based Express Scripts

By Ap/KWMU

Albany, NY – The state of New York is suing St. Louis-based Express Scripts. Express manages insurance programs for prescription drug coverage.

The lawsuit accuses Express of keeping as much as $100 million in rebates that should have gone to the state. It says the company kept that money by simply calling it a fee.

But Express officials deny the allegations, adding the state of New York has received all the rebates for which it contracted. Express also says it has saved the state more than $2 billion in drug costs since 1998.

New York Attorney General Eliot Spitzer and other New York officials claim Express violated its contract to negotiate the lowest prices for drugs under health plans for state workers. The contract required the company to negotiate the lowest prices and return any rebates to the state.

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