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Attorney General Peter F. Kilmartin joined attorneys general from 49 states and the District of Columbia and Puerto Rico in urging the U.S. government to change its current policy prohibiting the federal government from returning prescription drug settlement money to the individual states involved.
The National Association of Attorneys General (NAAG) sent a letter today 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 is attached.)
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.
"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."
Attorney General Kilmartin added, "As the cost of prescription drug care continues to increase, we must do everything in our power to contain costs. The states have contributed some $80 billion through 2016 to fund prescription drug coverage for individuals covered by both Medicaid and Medicare. While I applaud the progress of the Department of Justice in aggressively uncovering abuses in the pharmaceutical industry, I believe that states are entitled to their fair share of Part D settlement money, and support a legislative action to make this occur."