Telehealth Firm Faces Patient Safety Claims, PBMs Accused of Overcharging Taxpayers
Telehealth company LifeMD is facing allegations from former employees who claim the firm prioritized maximizing GLP-1 prescription volume at the expense of patient safety. Separately, a recent audit of Iowa Medicaid records revealed that pharmacy benefit managers (PBMs) utilized complex methods to handle prescription drug claims, leading to overcharges for taxpayers. The audit found one major PBM reportedly generated over $100 million by adjusting pharmacy payments without returning savings to state-managed care plans.
Former employees of the telehealth company LifeMD have alleged that the firm prioritized maximizing the volume of GLP-1 prescriptions over ensuring patient safety. These workers told STAT that providers were pressured to expedite their work at a pace deemed clinically irresponsible. Two former employees indicated that providers were sometimes expected to review as many as 25 patient cases per hour, relying solely on electronic forms filled out by patients, which translates to approximately two minutes per case.
LifeMD is listed on Novo Nordisk's website as a provider offering "legitimate medicine sourcing and patient support" for individuals seeking GLP-1 drugs, such as Ozempic and Wegovy.
In a separate development, an audit of Iowa Medicaid records has uncovered that pharmacy benefit managers (PBMs) employed intricate and sophisticated methods for managing prescription drug claims, resulting in overcharges to taxpayers. This finding highlights ongoing controversy surrounding PBMs, which serve as crucial intermediaries in the pharmaceutical supply chain.
The audit revealed that one large pharmacy benefit manager appeared to have generated more than $100 million. This was achieved by adjusting the amount of money paid to pharmacies without subsequently passing some of those savings back to managed care plans operating on behalf of the state. Iowa officials reported these findings, which stemmed from a review of records spanning from 2019 through 2021.
According to STAT News, these allegations and audit findings underscore significant issues within the healthcare sector.
