Medicare Subscriber AWP Prescription Drug Settlement

A class action lawsuit settlement with several drug manufacturers has been reached over allegations that they overcharged Medicare Part B Subscribers on nearly 200 prescription drugs. If you purchased certain drugs through Medicare Part B between 1991 and 2005, you may be eligible for a partial cash reimbursement.

According to the class action lawsuit, titled In re: Pharmaceutical Average Wholesale Price Litigation, certain drug companies reported false and inflated average wholesale prices for certain types of outpatient drugs. The Average Wholesale Price (“AWP”) is used to set reimbursement amounts that are paid by a) Medicare and its beneficiaries, b) private healthy insurers, and c) consumers making full cash or percentage co-payments under private health insurance plans. By reporting false and inflated AWPs for the drugs, it raised the price consumers, Medicare and insurers paid for the drugs.

The deadline for claim submissions has passed for most class members, but a court-issued order in February affects those in the Medicare Part B Class. This class consists of consumers who made a full cash payment or percentage co-payment for certain drugs under Medicare Part B, from January 1, 1991 to January 1, 2005. You can find the complete list of drugs here.

In order to receive a payment from the Pharmaceutical AWP Litigation class action settlement, you must file a claim by July 1, 2011. If you do not wish to remain in the settlement, you must submit your request for exclusion in writing postmarked by May 24, 2011.

You can find more information on how to file a claim for the AWP Medicare Part B Subscriber Class Action Settlement at www.AWPtrack2Settlement.com.