Better Employee Options: Workers' Pharmacy Lawsuit is Settled

Better Employee Options

Workers' Pharmacy Lawsuit is Settled

A lawsuit brought by the Injured Workers' Pharmacy against the city's Law Department has been settled out of court, THE CHIEF-LEADER has learned.

As part of the agreement, the Massachusetts-based mail-order pharmacy can continue to fill the prescriptions of injured city employees who have been awarded Workers' Compensation benefits, and bill the city directly.

Firm Got Preference

Previously the city accepted direct billing from its pharmaceutical provider of choice - Express Scripts. IWP and several other pharmacies complained of racking up thousands of dollars in debt while waiting for city reimbursements.

IWP Vice President of Marketing and Sales Ken Barlotta said the company was satisfied with the settlement.

"[We are] pleased that our pending matter with the New York City Law Department has been resolved, and injured workers of New York City can continue to utilize the services of any pharmacy they choose," he stated.

The suit claimed that the city was unlawfully denying injured workers access to other pharmaceutical companies by refusing to accept direct billing from any pharmacies except Express Scripts.

IWP sued the city to get hundreds of thousands of dollars it claimed it was owed for prescription payments the city never honored. It alleged the city was denying workers their right to choose pharmaceutical providers by making the reimbursement process a lengthy and onerous one for all companies except Express Scripts - essentially starving out the competition.

Defended Arrangement

The Law Department in the past contended that it was within its rights in setting up direct billing with the company it felt offered the city the best deal on prescriptions. Officials denied allegations that they were deliberately trying to reduce the choices available to Workers' Compensation beneficiaries.

Mr. Barlotta declined to comment on the specifics of the settlement, including the dollar amount his company received from the city.

John Sweeney, chief of the Law Department's Workers' Compensation division, said in a statement that he was pleased the matter had been resolved. "The settlement was in the best interest of all parties," he stated.