The U.S. Court of Appeals for the Third Circuit has decided that private insurers that provide Medicare benefits have the right to recover, just as the government does, from GlaxoSmithKline for expenses incurred for injuries consumers have suffered by taking the drugmakers Avandia diabetes drug.
Humana Medical Plan Inc., the putative class representative for health insurers who provide health care coverage as Medicare Advantage organizations under Part C of that federal Medicare law, argued that GSK should reimburse such organizations for the benefits they have provided to their insured for Avandia-related injuries. GSK countered that the Medicare law does not provide a private cause of action for Medicare Advantage organizations, according to an opinion issued late last week.
