Medco Defends Itself Against Federal Charge

Medco Health Solutions Inc. defended itself against a new charge that it had paid kickbacks to win a contract to provide pharmacy services to Medicare beneficiaries and federal employees.

The company said its contracts with Oxford Health Plans Inc. were legal and proper, despite a new Justice Department allegation Tuesday that Medco made $87.4 million in improper payments to win business.

Medco acts as a middleman between drug makers and insurers trying to lower the costs of prescription drugs.

In a wide-ranging whistle-blower lawsuit being prosecuted by the U.S. attorney in Philadelphia, the pharmacy benefits manager is accused of accepting and making inappropriate payments and destroying patient prescriptions to boost profit.

Oxford denied it had gotten illegal payments from Medco.

From Reuters