Local governments across the Ohio Valley, including counties and municipalities in West Virginia, have received settlement funds totaling nearly $3.5 million following a legal agreement involving the cholesterol medication Lipitor.
West Virginia Attorney General JB McCuskey announced that the settlement stems from allegations that pharmaceutical companies Pfizer Inc. and Ranbaxy Inc. delayed the release of a lower-cost generic version of Lipitor after the drug’s patent expired in March 2010. The delay reportedly resulted in higher healthcare costs for public entities that purchased the brand-name medication.
As part of the settlement, $1.85 million was distributed to cities and towns, while $1.63 million was allocated to counties, with amounts determined based on population. Paden City received $15,000 as part of the municipal distribution. Tyler County received $10,000, and Wetzel County received $30,000.
Additional funds totaling $3.08 million were distributed to the West Virginia Bureau for Medical Services and the Public Employees Insurance Agency (PEIA) to reimburse overpayments made through Medicaid and PEIA prescription programs.
The settlement also includes $3.8 million reserved for individual consumers who paid higher prices for Lipitor between March 24, 2010, and November 20, 2011. The Attorney General’s Office is currently developing a claims process for eligible consumers, with more information expected to be released in the future.
