Top Maryland officials shelved the expected approval of a $2.4 billion contract for the state’s prescription drug program in the midst of growing anxiety about the selected company’s lengthy legal history. St. Louis pharmacy benefits manager Express Scripts Inc. was in line to take over management of the drug program for roughly 200,000 current and former state workers, but the Maryland Board of Public Works Wednesday delayed the vote to further scrutinize the $2.4 billion contract. Officials were alarmed that Express Scripts paid $9.3 million to Maryland and more than two dozen states to settle a 2008 lawsuit for urging doctors to switch patients’ cholesterol drug brands. The firm also settled a multimillion-dollar New York lawsuit after being accused of pocketing about $100 million in drug rebates owed to the state.
“I’m not picking sides,” said Comptroller Peter Franchot, who with board members, Gov. Martin O’Malley and state Treasurer Nancy Kopp, must finalize the decision. “I just think this is a big contract. We need to have as many facts as possible in front of us.”
However, officials close to the situation said Franchot had “deep reservations” about replacing Rockville company Catalyst Tx with a company enveloped in repeated controversy. The sources say the comptroller will seek an opinion from Attorney General Doug Gansler about conducting business with Express Scripts.
Kopp also has expressed concerns with the contract. Catalyst Tx has issued a formal protest against the deal.
But budget analysts in the O’Malley administration say that shifting to Express Scripts would save the cash-strapped state $100 million over the next five years. Lawmakers are now tackling a $1.6 billion budget gap for next fiscal year.
“I’m glad we weren’t discussing that one today,” O’Malley said, as officials were unable to answer a series of questions about the soundness of the deal. He said they would re-examine the contract when the board meets again in two weeks.
Thom Gross, an Express Scripts spokesman, refused to comment on the situation.
The company awarded the contract will be in charge of securing lower drug prices for state workers from pharmacies, an arrangement that critics contend puts a greater emphasis on the bottom line than the wellness of patients.
