Auditor finds $24.5 million in prescription overcharges

An audit of Delaware's prescription benefits manager has found that the state paid $24.5 million more than it should have for its employees’ prescription drug plan.

“My special report found that Delaware paid three times the average drug inflationary price between 2018 and 2020 for state employee prescriptions,” said State Auditor Kathy McGuiness.

In her special report, “Lack of Transparency & Accountability in Drug Pricing Could be Costing Taxpayers Millions,” released June 18, McGuiness said Express Scripts Inc. should pay back the $24.5 million it overcharged the State of Delaware for its state employees’ prescription drug plan over the two-year period.

“While the national drug inflationary rate was 4.7 percent during those three years, Delaware paid a 20.1 percent increase in prescription costs,” she said.

McGuiness said vague language in the Express Scripts contract with the state allowed the prescription benefits manager to take advantage of the agreement.

“That’s why one of my report’s recommendations is for independent pharmacy experts to be included in contract negotiations with PBMs – so that they can provide the state’s legal team with expert guidance to ensure a sensible fee structure in the contract,” she said.

On June 17, the House unanimously passed House Bill 219, which would prevent price gouging by PBMs.

“Imagine how much good that $24.5 million could do in the First State,” McGuiness said.