Pharmaceuticals have proved its importance in the diagnosis, treatment, and prevention of almost all diseases and other health related problems we have been facing since the earliest years of medicine. Thus, considering it a necessity for every people must be a bare minimum.
For the Arkansans, prescription drugs should be accessible to everyone if need be. And with the help of pharmacy benefit managers, the middlemen between pharmacies and insurance providers, a lower drug cost can be secured.
However, Centene Corp.—a Medicaid managed care organization—along with its subsidiaries, still plotted and managed to swindle from the state people by means of overcharging them for prescription drugs.
But how did it happen?
According to Arkansas Attorney General Leslie Rutledge, Centene and its subsidiaries took over the job of a pharmacy benefit manager for Arkansas’ Medicaid program. With the state’s faith in them, a proper management of a prescription drug program for everyone was assumed.
Arkansas Total Care and Envolve Pharmacy Solutions Inc., both of which are Centene’s subsidiaries, have negotiated with several pharmacies for the Arkansas Medicaid program’s prescription drugs and how the reimbursement and rebates should go.
Centene and Envolve must have seen the opportunity. That is why in 2017 and 2018, they subcontracted the reimbursement payments to CVS Caremark, also a pharmacy benefit manager, but Envolve did not once disclose the discounts and the legitimate costs of the ingredients and dispensing fee from CVS. According to Deputy Attorney General Shannon Halijan, the discrepancy resulted to an inflated bill charged to the state, with roughly $2.7 million overcharge.
On the other hand, Rutledge remained committed in fighting for the Arkansans and reverse Centene’s act of taking advantage to the people, “I will always fight to protect Arkansans, and this settlement with Centene is a big step in repairing the damage it did,” she stated.
Rutledge announced a $15.2 million settlement with one of the largest Medicaid managed care companies in the US—Centene Corp. And as part of the agreed settlement, Arkansans will enjoy the benefits in two payments; the first one promised within 45 days and another within a year.
For Centene, this kind of fraudulent act is not a whole new ball game. Recently, Illinois Attorney General Kwame Raoul declared a $56 million settlement with Centene for allegations of overcharging prescription drugs anew. They have been doing it to several different states as well, such as in June, the two states: Mississippi and Ohio had their attorneys general announce the settlement agreed with Centene over allegations of overcharging the states’ Medicaid program. As a result of their scheme, they ought to pay Ohio $88.3 million, and $55.5 million to Mississippi.
