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Home > Blogs > Ohio politics > Archives > 2009 > October > 28 > Entry
BWC blows off $14.5 million in drug rebates, report says
The Ohio Bureau of Workers’ Compensation missed the chance to recover $14.5 million in rebates from drug manufacturers between July 2005 and September 2008 and took eight months to get around to limiting payment for three expensive drugs at a cost of more than $5 million, a new report from the state inspector general said on Wednesday, Oct. 27.
The 19-page report said BWC officials fixed most of the weaknesses identified in an internal audit of the agency’s pharmacy benefits program for injured workers but missed these two items.
The bureau is an insurance pool for workers injured on the job in Ohio.
An earlier BWC contract with its pharmacy benefits manager called for the manager to be paid with drug company rebates. BWC switched in 2005 to paying the manager flat fees and giving the state the right to seek the drug company rebates. But the state failed to go after the rebates, the report said.
BWC Administrator Marsha Ryan said, “When this administration arrived at BWC in mid-2007, we found a pharmacy program in disarray and suffering from severe neglect. Since 2007, substantive and efficient pharmacy reform has occurred. We commissioned a complete study of the program, made improvements where they were desperately needed and added leadership and staff. I am confident the care we have administered to the pharmacy program over the past two years is providing efficient service to Ohio’s injured workers.”
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Comments
By victim
October 29, 2009 9:18 AM | Link to this
Too bad. They could have used that money to actually release compensation to injured workers in a reasonable timeframe, rather than play games, deny claims and schedule hearings.
By Phil Man
October 29, 2009 8:37 AM | Link to this
Just inexcusable. Do they not have accountants who noticed the 14.5 million dollar error? How in the world did it progress past a month? do they not manage cash flow?
By TKidding72
October 29, 2009 12:12 AM | Link to this
Why is it a missed opportunity? If the BWC had 14.5 million in rebates shouldn’t they still be entitled to that money? I hate rebates they always find a way to screw you out of that money anyways. Why should they be limiting expensive drugs? If the people need them they should get them.
By TRS
October 28, 2009 7:41 PM | Link to this
Ah, the efficiencies of government! Can’t wait until that same efficiency is seen nationwide in healthcare. If the state can’t get it right, imagine the feds…
By worker
October 28, 2009 6:05 PM | Link to this
How can the state just let the rebates pass when they need money? Maybe if they got the rebate, they wouldn’t charge my place of employeement an absolutely retarded franchise fee.
By flipper
October 28, 2009 4:34 PM | Link to this
14.5 million could have paid alot of unemployment benefits to alot of deserving people. What a sorry a$$ organization.