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Testimony from the heads of Express Scripts, Optum Rx and Caremark in July defending pharmacy benefit managers’ business practices could be coming back to bite them.
The chair of the powerful House Committee on Oversight and Accountability is threatening the leaders of the three largest pharmacy benefit managers in the country with steep fines — or jail time — for allegedly lying in a recent congressional hearing.
Chairman James Comer, R-Ky., sent letters Wednesday to Patrick Conway, the CEO of UnitedHealth’s Optum Rx; Adam Kautzner, the president of Cigna’s Express Scripts; and David Joyner, the president of CVS’ Caremark arguing that statements they made in a July hearing contradicted committee findings and research by the Federal Trade Commission.
During the hearing, Conway, Kautzner and Joyner testified that their PBMs treat affiliated and unaffiliated pharmacies equally when setting rates, negotiating contracts and telling patients where to dispense their medications.
Those statements were lies, suggests Comer’s letters, which cite committee and FTC evidence to argue that PBMs increase revenue at their own pharmacies at the expense of other businesses.
Comer asked the executives to correct their statements by Sept. 11 or face possible legal action — including up to five years in jail, in addition to fines that could reach hundreds of thousands of dollars.
Express Scripts denied Comer’s allegations, while CVS said it was reviewing the letter. UnitedHealth did not respond to a request for comment.
“We stand firmly behind Dr. Kautzner’s testimony and strongly refute and disagree with this letter’s allegations,” an Express Scripts spokesperson said in a statement.
[EXTERNAL LINK] - PBM executives threatened with fines and jail time for alleged perjury in House hearing
The chair of the powerful House Committee on Oversight and Accountability is threatening the leaders of the three largest pharmacy benefit managers in the country with steep fines — or jail time — for allegedly lying in a recent congressional hearing.
Chairman James Comer, R-Ky., sent letters Wednesday to Patrick Conway, the CEO of UnitedHealth’s Optum Rx; Adam Kautzner, the president of Cigna’s Express Scripts; and David Joyner, the president of CVS’ Caremark arguing that statements they made in a July hearing contradicted committee findings and research by the Federal Trade Commission.
During the hearing, Conway, Kautzner and Joyner testified that their PBMs treat affiliated and unaffiliated pharmacies equally when setting rates, negotiating contracts and telling patients where to dispense their medications.
Those statements were lies, suggests Comer’s letters, which cite committee and FTC evidence to argue that PBMs increase revenue at their own pharmacies at the expense of other businesses.
Comer asked the executives to correct their statements by Sept. 11 or face possible legal action — including up to five years in jail, in addition to fines that could reach hundreds of thousands of dollars.
Express Scripts denied Comer’s allegations, while CVS said it was reviewing the letter. UnitedHealth did not respond to a request for comment.
“We stand firmly behind Dr. Kautzner’s testimony and strongly refute and disagree with this letter’s allegations,” an Express Scripts spokesperson said in a statement.
[EXTERNAL LINK] - PBM executives threatened with fines and jail time for alleged perjury in House hearing
