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Pharmacy benefits manager charged in kickback scheme

Medco, the largest pharmacy benefits manager in the United States, has been accused of paying over $200 million in kickbacks to a managed care company in order to obtain contracts.

The allegations are part of a civil lawsuit brought by the U.S. Attorney’s Office in Philadelphia. This is the second time Medco has been accused of paying kickbacks to a health insurer.

Pharmacy benefits managers purchase large quantities of discount medicines for clients such as government agencies and hospitals. With drug prices rising, government officials have begun investigating whether pharmacy benefit managers are passing their best prices along to state agencies and consumers.

The New Jersey Star-Ledger reported on the story on December 2, 2004.

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