Arizona AG accuses asthma drug maker of scheming to avoid Medicaid rebates
- AIPC Rx
- Feb 22
- 1 min read
Reporter: PAYNE MOSES
Arizona Attorney General Kris Mayes on Thursday sued drug producer GlaxoSmithKline (GSK) for predatory practices toward asthma patients, namely discontinuing one of its popular medications in order to “avoid paying Medicaid rebates” affected by inflation.
GSK stopped production of Flovent, a prescription drug for asthmatics age 4 or older, on January 1, 2024. The discontinuation aligned perfectly with the day in which the American Rescue Plan, a congressional move enacted by President Joe Biden in response to COVID-19, removed the cap on Medicaid rebates.
According to a press release, more than 1 million Arizonans depended on this long-term asthma control inhaler.
Prior to ending production, GSK had hiked up Flovent’s price “far beyond inflation.” In 2013, Flovent cost about $230 but a decade later, according to GoodRx, it rose to $340. This price was in stark contrast to a generic version of the drug that GSK began selling in 2022 for $310, per NPR.
The generic drug has the exact chemical makeup of Flovent and is being distributed through Prasco LLC.
Mayes said her office “will not stand by” as vulnerable patients are blatantly being taken advantage of.
“GSK put corporate greed ahead of the health and safety of Arizona’s families and children,” Mayes said in the release. “Their manipulation of the system has left countless patients without access to life-saving medication, caused a spike in emergency room visits and likely contributed to preventable deaths.”
How did GSK avoid paying rebates on the asthma drug?
The cap removal by American Rescue Plan effectively required GSK to either pay for rebates in full or lower the asthma drug’s price... CONTINUE READING
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