AARP voices support for Medicaid Fraud litigation

posted on:
August 27, 2008

Wendi Lewis


David P. Sloane, speaking on behalf of the AARP as Senior Vice President for Government Relations and Advocacy, voiced the agency’s support for Alabama’s pending Average Wholesale Price (AWP) litigation against 72 pharmaceutical companies.

Sloane commended Alabama Attorney General Troy King and Medicaid Commissioner Carol A. Herrmann-Steckel for their efforts on behalf of Medicaid beneficiaries. The State alleges the drug companies falsified pricing information, charging Medicaid much higher rates for drugs than they charged retailers, some by as much as 1,000 percent.

Jere Beasley, founding shareholder of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., and his firm represents the State of Alabama as lead counsel in this litigation. Three of the companies already have gone to trial, one in February and two in June, with juries in both trials finding in favor of the State, awarding a total of $329 million. There are 69 companies left facing charges of fraud.

Sloane notes that “AARP is dedicated to increasing the access and affordability of prescription drugs and we have followed with great interest the progress of the litigation.” He says, “Your work is critical not only to Alabama’s 900,000 Medicaid beneficiaries, but also to Medicaid and Medicare beneficiaries throughout the country.”

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