Alexandria, VA – The National Association of Chain Drug Stores (NACDS) and Food Marketing Institute (FMI) filed a brief and economic report opposing the proposed amended First DataBank and Medi-Span class settlements in the U.S. District Court for the District of Massachusetts, which the plaintiffs suggested would substantially cut health plans’ drug payments, harming community pharmacies.

Earlier this year, federal Judge Patti B. Saris rejected the original settlements proposed by First DataBank and Medi-Span, in part, because of a brief and economic analysis filed jointly by NACDS and FMI in objection to those proposed settlements, as well as opposition briefs filed by others.

The amended settlements by First DataBank and Medi-Span would reduce the prescription drug benchmark of average wholesale prices (AWPs) by 4 percent for about 1,400 drug products. Further, as NACDS and FMI point out in their brief, First DataBank and Medi-Span will reduce AWPs for thousands of other drug products, and will stop publishing AWPs altogether within two years, seemingly ignoring the Court’s rejection of that plan in their original proposed settlement.

NACDS and FMI continue to argue that the proposed settlements fail to fairly compensate the class members and would unfairly penalize retail pharmacies. The brief also includes an economic analysis detailing the numerous ways in which the alleged cost savings and impact of the settlements were based on an inaccurate economic analysis.

“These settlements disproportionately impact retail pharmacies,” said NACDS President and CEO Steven C. Anderson, IOM, CAE “Retail pharmacies would likely bear the brunt of these settlements. We urge the District Court to carefully consider the amended proposal and its impact on the patients who rely on their community pharmacist.”

“The settlements would provide inadequate benefits to the plaintiffs and, worse, undermine the ability of pharmacists to serve many families, especially in rural and inner-city America,” said FMI President and CEO Leslie G. Sarasin, Esq., CAE.