Recently, Frier Levitt has seen a new recurrence of an older trend, in which pharmaceutical manufacturers take action against pharmacies related to the use of certain patient savings programs, such as copay coupon programs. Patient savings programs are designed to decrease out-of-pocket expenses for patients for certain branded medications. At the same time, these programs help pharmacies dispense the manufacturer’s products, often in instances where patients do not have insurance or do not have approved coverage for a particular manufacturer’s product.
Frier Levitt has previously reported on actions by other pharmaceutical manufacturers, such as, Galderma Laboratories, alleging fraud against pharmacies all across the country in connection with improper submission of claims to the manufacturer’s coupon programs, which can be found here. This past month, however, Frier Levitt has seen a resurgence of this tactic with new manufacturers. For example, the manufacturer, Dermavant, has begun sending letters to pharmacies claiming improper use of the CareConnect Card Program, and often demanding that the pharmacy immediately pay thousands of dollars in alleged damages, or face potential suit. The letters also suggest that the pharmacy must pay the manufacturer’s attorneys’ fees.
It is important that pharmacies that have received these letters take appropriate steps to maintain their rights and protect their interests. Often, manufacturers’ claims are inaccurate or overstated, and pharmacies may be able to raise successful defenses or provide detailed rebuttals to such manufacturers to avoid liability. Frier Levitt has successfully defended numerous pharmacies in cases brought by manufacturers regarding claims submitted to coupon programs – before, during and after litigation. Further, pharmacies should be prepared, implementing certain policies and procedures regarding the use of manufacturer copay cards and patient saving programs.
How Frier Levitt Can Help
Frier Levitt has worked closely with pharmacies in understanding patient savings programs, and the industry standards for claims submission. If your pharmacy has ever used or is currently using patient savings programs and is concerned about possible litigation with pharmaceutical manufacturers, Frier Levitt can help. We have a team of attorneys who understand the bounds of the industry standards surrounding these issues. Our attorneys are knowledgeable in defending pharmacies against lawsuits rooted in allegations of inaccurate application of patient savings programs. If you have questions or need help fighting adverse actions, contact us to speak to an attorney.
