AG Fox Calls for Federal Legislation to Return Rx Drug Settlement Money to the States

AG Fox Calls for Federal Legislation to Return Rx Drug Settlement Money to the States

Attorney General Tim Fox announced today Montana joined 48 other states and the District of Columbia and Puerto Rico in sending a letter to the U.S. Senate Finance Committee chair and ranking member, asking them to introduce legislation that would allow the federal government to return prescription drug settlement money to the states.  The letter was issued through the National Association of Attorneys General (NAAG).

At issue is a prescription drug benefit, known as Medicare Part D, for individuals covered by both the Medicare and Medicaid programs. This benefit has been paid for by the federal government and the states. Over the last 10 years, the federal government has recovered tens of millions of dollars in pharmaceutical fraud settlements involving Part D drugs; however, the states have never received any share of the money.

“At a time when state governments are endeavoring to do more with less, it is important now more than ever that we receive every dollar we can from recoveries related to fraud and overpayment cases involving Part D drugs,” Attorney General Tim Fox said.  “New legislation at the federal level would allow us to return to the reciprocal sharing of dual eligible beneficiary recoveries that existed prior to 2006, when state Medicaid programs paid directly for outpatient prescription drug benefits for people covered by both Medicare and Medicaid.”

“A specific statute authorizing the federal government to share recoveries with the states is appropriate here as a matter of equity and fundamental fairness…” the NAAG letter reads. “We request your assistance in addressing this inequity and recommend federal legislation that would allow the federal government to return a proportionate share of all Part D recoveries to the states.”

The letter was signed by attorneys general in 49 states, the District of Columbia and Puerto Rico. It can be found here.

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