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Pharmaceutical
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September
20, 2002 To recover what county legislators believe are gross overpayments by Medicaid for drugs, Legislator David Bishop proposed the county sue major pharaceutical companies charging illegal price fixing by the firms. Skyrocketing Medicaid costs, which are borne in New York by the counties, are causing chaos in budgets and one cause for an impending tax increase in Suffolk next year. The legislature authorized retention of a law firm to bring legal action against drug companies to recoup “overpayments” which “may have arisen from illegal activity on the part of pharmaceutical manufacturers, wholesales and/or retailers.” Suffolk has instituted a prescription drug cost comparison program for common medicines used by elderly and persons with chronic conditions. The County has posted a request for legal services and qualified law firms will be reviewed by the Social Services Committee to determine a legal strategy to recover “overpayments or inflated costs that may have resulted from any unlawful activity.” Interested firms are invited to contact Leg. Counsel Paul Sabatino at 853-4081.
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