December Hearing in Proposed First DataBank AWP Settlement

December Hearing in Proposed First DataBank AWP SettlementA federal court hearing has been set for Dec. 17 in a case that NCPA's legal strategy has saved community pharmacies from a rollback in Average Wholesale Price calculations that would cost them $291 a day.

NCPA has urged U.S. District Court Judge Patti Saris in Boston to reject an amended settlement proffered by First DataBank (FDB) in a suit brought against the California-based publisher by several union health plans. McKesson and Medi-Span also were sued, but are not involved in the settlement. NCPA was not a party to the suit, but intervened to prevent grievous harm to community pharmacies. The suit alleges that the trio conspired to increase the spread between Wholesale Acquisition Cost and AWP.

"This settlement permits the sole wrongdoer, FDB, to relieve itself of liability for a mere $1 million payment to the Settlement Fund, while placing the burden of any settlement on pharmacies and consumers," NCPA told the judge. "We urge the court to not approve a settlement that creates more problems than it solves."

Judge Saris has given preliminary approval to the new proposed settlement in the class action lawsuit. Last January, citing issues raised by NCPA, Saris rejected a proposal from FDB and Medi-Span that included a 4% rollback on the markup between WAC and AWP on more than 8,000 brand name formulations.

The rollback would have cost the average independent community pharmacy about $105,000 annually-more than wiping out the average independent's profits, according to figures from the NCPA Digest. Under that proposed settlement, FDB, a Hearst company, also would have phased out publication of AWPs within two years of the date of the final settlement.

The latest proposal from FDB would reduce the number of affected drugs to about 1,400 with an effective date 90 days after approval of the final settlement. But NCPA noted that even at that reduced level, 40% of all branded drugs, which represent 80% of all prescriptions filled at independent pharmacies, would be affected by the rollback.

taken from NCPA e-NEWs Weekly: visit www.ncpanet.org