New York’s DC 37 Helps Win Millions for AIDS Patients Nationwide
March 14, 2007
AIDS sufferers throughout the country will be eligible for reimbursement of expenses relating to the purchase of the drug Serostim – the result of a proposed $24 million settlement of a class-action lawsuit in which the DC 37 Health & Security Plan is a lead plaintiff.
The lawsuit stems from a 2005 agreement by Serono Laboratories, Inc., to pay $704 million in fines and restitution to federal and state health care programs after a federal criminal investigation revealed that “nearly 85 percent of prescriptions written for Serostim were not medically necessary,” according to the U.S. attorney in charge of the case. The probe disclosed that the company promoted Serostim using a variety of improper marketing schemes to encourage doctors to prescribe the drug when it was not needed.
The DC 37 Health & Security Plan, a coalition member of the Prescription Access Litigation Project – a drug industry watchdog group – later filed a civil suit because the original settlement had reimbursed neither the affected AIDS patients nor private benefit plans. After more than a year of hard-fought litigation, EMD Serono Inc., Serono Laboratories Inc. & Merck Serono International S.A. – the manufacturer of Serostim – agreed to the $24 million settlement. It applies, nationwide, to individuals who paid the full amount or a co-pay for Serostim, as well as private health plans that covered costs relating to its purchase, including the DC 37 Health & Security Plan.
A federal court in Massachusetts has given preliminary approval to the settlement, but must still conduct a “fairness hearing” before final approval is ordered.
“This case cried out for justice,” says Lillian Roberts, DC 37’s executive director. “Some of our most vulnerable members, who could ill-afford the co-pays for this drug, were harmed economically, as well as our benefits Plan, which paid the hugely expensive ingredient costs for Serostim. Once the settlement is approved, both our members and the Plan will be able to recoup a fair share of what they paid.”
AFSCME members who believe they may be eligible to recover under the terms of the settlement should call this hotline number: 1-800-378-3615. Click here for more information about the settlement.
Those wanting to know how to file a claim can visithttp://www.serostimsettlement.com/.
