Justinian Lane
Taxpayers paid for 80% of the medical bills from Vioxx…
I’m sitting in a conference right now regarding the status of the settlement for the ~50,000 Vioxx cases. One of the things that has to be resolved before money gets paid is the Medicare/Medicaid lien. As I’ve explained before, if Medicare or Medicaid (or a private insurer) pays for your medical expenses related to a defective drug, and you later sue the manufacturer of that drug, you’ll have to pay Medicare or Medicaid back.
Apparently, 80% of the Vioxx claimants were on Medicare or Medicaid. (Some were on both.) Thankfully, the Vioxx settlement will make sure our overburdened Medicare and Medicaid systems will be paid back the many millions of dollars that were spent to treat Vioxx victims. But as I’ve also written about, FDA preemption will eliminate the right of the victims of the next Vioxx to reclaim these medical expenses. In other words, FDA preemption will make taxpayers pay for the negligence of pharmaceuticals.
It can be debated whether manufacturers who comply with FDA regulations should be subject to punitive damages. But there is no reason that taxpayers should have to pay for the medical bills of victims of prescription drug injuries. John Kerry called it the "Pottery Barn Rule," while others call it the "Swap Meet Rule" - you break it, you buy it. Can anyone offer a compelling reason to change the rule to "Merck breaks it, taxpayers pay for it?"
Posted at 3:06 PM, Jun 24, 2008 in FDA | Federal Preemption | Permalink | Comments (18) | TrackBack (0)







Comments
Come off this pious stance - the taxpayers ALWAYS pay.
Whether it's in the form of the higher prices due to increased product and insurance costs caused by frivilous litigation (estimated at anywhere from 25% to 33% of GNP), or goverment gouging with cigarette, gasoline and alcohol taxes, licensing and permit fees or taxpayers who pay income taxes subsidizing those who receive so-called "Earned Income Credits", the taxpayers always pay for it.
I have no problem with "if Merck breaks it, Merck pays it" as long as when Merck wins at trial their adversaries pay Mercks damages. Since the trial bar insists on being "partners" with their clients in working on a contingency fee basis, let them share in the risks when the other sides' legal fees and costs are assessed against their clients.
Posted by: Paul W Dennis | June 24, 2008 06:32 PM
Before anyone goes mouthing off at victumes of the Largest medicail disaster in our histry. go too http://www.officialvioxxsettlement.com/calculator/ look at just how much one in the settlement will get. then Subtract medical , such as Heart surgery 40.000.00 plus plus a average of 10,000 per year min of 4 yrs paid back too Medicare or Medicaid .ok then Subtract 35 to 45% for attorney fees.
Posted by: Never Mind | June 24, 2008 11:47 PM
Vioxx Settlement Too Low? Vioxx Settlement Too Low?Vioxx Settlement Too Low?
Vioxx Plaintiffs Have Until Feb. 29 to Enroll in Settlement Program
(Fort Lauderdale, Fla.) – The recently announced $4.85 billion Vioxx settlement has been promoted as a victory for people who suffered Vioxx-induced heart attacks and strokes, but is it? For example, a 60-year-old woman who suffered a debilitating stroke after taking Vioxx every day for three years, who is now paralyzed on one side and can no longer speak, would receive approximately $500,000 under the settlement. After attorney’s fees, litigation costs, and especially massive health insurance and hospital liens, little may be left for the victim.
Dozens of factors affect the payout for any individual. Victims can go to http://officialvioxxsettlement.com/calculator to find out approximately what the settlement is worth to them. No victim can be forced to accept the settlement, but Merck has included a controversial provision in the settlement agreement that makes it very difficult for victims to say no.
The settlement agreement requires the plaintiffs’ lawyers to recommend the deal to all their clients, and to refuse to represent any client who chooses to go ahead with their lawsuit instead of accepting the settlement. As reported in a recent New York Times article, “Merck … wants to be sure that plaintiffs who do choose to go ahead will have to find new lawyers, a process that will probably be difficult because the firms with the most experience in the case are all part of the agreement.”
Eligible claimants have until February 29, 2008 to enroll in the settlement program. Vioxx victims who do not want to settle, but are having trouble finding counsel willing to represent them, can contact the Florida Bar, or go to the Florida Bar’s lawyer referral service at www.floridabar.org. However, there is no specific listing for firms willing to take non-settling Vioxx cases, according to John Uustal, a partner with Fort Lauderdale-based Kelley/Uustal PLC.
“I just don’t like what Merck did here,” said Uustal. “It’s not fair to the victims. It makes it very, very difficult for victims to find a new lawyer if they don’t want to settle. These folks just don’t know what to do or where to turn.”
About Kelley/Uustal
Robert Kelley and John Uustal formed their team of seasoned trial attorneys with more than 50 years of combined courtroom experience and more than 100 jury trials. The firm focuses its practice on securing compensation for clients who have been left physically and/or financially devastated by a catastrophic injury or event. The attorneys have been instrumental in securing more than $250 million in jury awards and settlements for clients. For more information, visit www.justiceforall.com.
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Posted by: Never Mind | June 25, 2008 12:32 AM
Paul, I've never seen a study claiming frivolous litigation makes up 25-33% of the GNP. Further, consumers don't pay for all of the costs of litigation, whether frivolous or not. For example, I only buy American cars. So if Toyota gets hit with $10 billion in punitive damages, it won't raise the price of my cars. Contrast that with Medicare; I pay taxes and I therefore am subsidizing the negligence of corporations who release dangerous drugs.
I'm not a fan of loser-pays because it will have a chilling effect on lawsuits filed by average citizens against big corporations. However, I would also point out that trial lawyers do bear the burden of paying their own expenses, which can go into the millions on a big case.
Posted by: Justinian Lane | June 25, 2008 09:34 AM
True, some attorneys will invest heavily into the investigation, expecting a huge payoff in the end. They voluntarily do it.
The differece is that the defense is forced into it and there is no payoff at the end. If successful all they do is limit the amount they must pay - fighting off a five million dollar claim while spending one million to do it, is no victory - only the smaller loss. Ultimately, in our civil justice system the defense ALWAYS loses - it is just a question of the scope of the loss
There is no "justice" in the civil justice system until such time as a successful defendant is brought back to the financial situation they were in absent the lawsuit.
"Loser pays" would certainly have a chulling effect on bogus litigation (which would be a very good thing for society) - I doubt that it would stop truly meritorious litigation
Posted by: Paul W Dennis | June 25, 2008 11:21 PM
$4.85 Billion is a lot of money and sounds like it. On the other hand, we have heard Merck profited by as much as $10 billion through the sale of Vioxx. My question is: Why should Merck be allowed to retain ANY of its profit from a drug that has killed thousands and ruined the lives of many thousands more, and was eventually withdrawn from the market? My wife suffered both heart attack and stroke and "might" receive a greaty diminished settlement, from which her attorney will deduct his blood, and from which she will have to pay back Medicare and Tricare.
Something very wrong here!
Merck's entire profit from Vioxx should be paid to eligible claimants. An eye for an eye, a tooth for a tooth.
Posted by: John A. Smith | June 26, 2008 11:31 AM
$4.85 Billion is a lot of money and sounds like it. On the other hand, we have heard Merck profited by as much as $10 billion through the sale of Vioxx. My question is: Why should Merck be allowed to retain ANY of its profit from a drug that has killed thousands and ruined the lives of many thousands more, and was eventually withdrawn from the market? My wife suffered both heart attack and stroke and "might" receive a greaty diminished settlement, from which her attorney will deduct his blood, and from which she will have to pay back Medicare and Tricare.
Something very wrong here!
Merck's entire profit from Vioxx should be paid to eligible claimants. An eye for an eye, a tooth for a tooth.
Posted by: John A. Smith | June 26, 2008 11:34 AM
$4.85 Billion is a lot of money and sounds like it. On the other hand, we have heard Merck profited by as much as $10 billion through the sale of Vioxx. My question is: Why should Merck be allowed to retain ANY of its profit from a drug that has killed thousands and ruined the lives of many thousands more, and was eventually withdrawn from the market? My wife suffered both heart attack and stroke and "might" receive a greaty diminished settlement, from which her attorney will deduct his blood, and from which she will have to pay back Medicare and Tricare.
Something very wrong here!
Merck's entire profit from Vioxx should be paid to eligible claimants. An eye for an eye, a tooth for a tooth.
Posted by: John A. Smith | June 26, 2008 11:35 AM
$4.85 Billion is a lot of money and sounds like it. On the other hand, we have heard Merck profited by as much as $10 billion through the sale of Vioxx. My question is: Why should Merck be allowed to retain ANY of its profit from a drug that has killed thousands and ruined the lives of many thousands more, and was eventually withdrawn from the market? My wife suffered both heart attack and stroke and "might" receive a greaty diminished settlement, from which her attorney will deduct his blood, and from which she will have to pay back Medicare and Tricare.
Something very wrong here!
Merck's entire profit from Vioxx should be paid to eligible claimants. An eye for an eye, a tooth for a tooth.
Posted by: John A. Smith | June 26, 2008 11:35 AM
John, I'm sorry for your and your wife's suffering. I also hope your attorney is taking good care of you. I agree with you that under certain circumstances, a company should have to disgorge all of its profits. You're right, if Merck made $10 billion selling Vioxx, and only has to pay out $5 billion, well, the math speaks for itself.
There's a phrase called "buying the tort," and it describes when a defendant made the decision to commit a tort because the profit from the tort exceeds the costs. Damage caps will only make buying the tort easier.
Posted by: Justinian Lane | June 26, 2008 12:07 PM
My mother took Vioxx and died from it. She passed away September 28th 2003. I was only 22 years old. My life had really just started. I had no children and hadn't gotten married yet. Since then I have done those things and each time I accomplished one of these happy events in my life, I relived the fact that my mother wasn't there because she took a drug that was suppose to help her. My children and husband will never get to hear my mothers infectious laugh that she had. My children and husband will never know what a great woman she was. I only have stories to tell them. I accept this settlement in an effort to gain a little closer only but I think my mother life is worth a hundred times more then the profit that they made. I don't understand why we have to pay for the drugs that killed our family members. Haven't we paid enough.
Posted by: Stacey | June 27, 2008 12:18 PM
Well it is all fine that medicare and medicaide get there pay ... but in my situation I was a working tax payer till my heart attack took me out of work. A I had my own insurance to pay all of my bills, but I still bet they try and make me pay some back if that be the case I will not accept it and will go further on with it
Posted by: Doug | June 27, 2008 12:28 PM
Stacey, I'm very sorry for your loss. Thank you for sharing a little bit about your mother with us. It's very important for us all to remember that real people died because they trusted Merck and the FDA to keep them safe.
Posted by: Justinian Lane | June 27, 2008 12:30 PM
If it wasn't so utterly tragic and murderous, one would almost have to just stare in wonder of the great planning Merck has done…don't think for a minute that all - decisions to let people die, only pull the drug when the last potential incremental profit was made, using the major mi/strokes to also cover up other problems (the "veil of cover"), use the "engine" of the MASS TORT "reform" craziness to drive towards a completely unfair and weird private agreement, the clogging of the courts by moving cases from the states to the Federal under the MDL "right" Merck won (and misused) to clog the dockets, use that docket clogging for scare purposes, dilution and stealing of civil rights, and so, so much more - I have to stop or this gets too long. But I have much written on what Merck's strategy might be - 9 months BEFORE the private “deal” - or is the word “deal supposed” to be "settlement"; and the similarity is alarming. To advance my own case, I studied Merck's moves, analyzed their cost/beenfis, and much more...it wasn’t too difficult to understand their comprehensive strategy; it was however, much to be puzzled over as way too many just “rolled over”, and did not exemplify the repudiation that they may have.
...
It is ALARMING, actually that is just so, so understated…it is miniscule in the larger scheme of what is happening - and we must hope that some smart, tough, no-nonsene legal minds, scholars, constitutional experts who WANT to protect the public's rights, will yet converge - and guess what? - it ain't over! - at least Canada has a bit more smarts..
...
The absolute sadness is the thousands and thousands of Vioxx victims, and that is what they are, who not only have had to endure Merck's (alleged) neglect, deceit and fraud and suffer heart attacks; but now are going through the ups and downs of getting shafted again!
...
Hey MASS TORT REFORM - you are still "full of yourselves and your cockiness is just so nutty; I really don't think you will have your way on tghis when the dust settles...butg in the meantime, I guess you shall maintain your smugness and scorn of the Vioxx victims while you have coffee with the attorneys who deserted their clients legal rights in droves...go ahead, have your fun for now; it is more than apparent that mean spirit is in your heart and minds...
…
Dennis Harrison
MBA - BGS
…
Are you also one of the disgusted, confused, and worse...litigants who feel that you have been boxed in to the MERCK "settlement" - and there are many ways.... Are you really hoping to find some compassionate individuals to dialogue with, an especially those in a similar or exact situation. then read on....
….
Vioxx Settlement - a group to relate to...heart - mi - stroke - bone - spine
…..
Mass Tort reform “hawks”, as well as many trial attorneys appear hopeful that the MSA (Master Settlement Agreement) is a “model”. Rather than perform their jobs as they were trained, they can convert much of it to mere paper pushing and administration; with interests of their clients being secondary to their own – there has been much written about that. However, surely their intellectual capacity ought to recognize that a rigorous, or at least a reasonable and fair set of standards should be the rule.
…..
There is a VIOXX EDUCATION PLAINTIFF EDUCATION GROUP (VPEG) for Vioxx Plaintiffs (now 340 and growing people). Regardless of the “settlement” official position - "things are not as they always appear...", the group REMAINS very, very relative and is gaining increasing “name brand recognition”. VPEG concerns, etc., need to be dealt with, and VPEG is becoming one of the lynchpins in converting a very unfair private settlement to what it should be…
…
VIOXX victims - we know you shall gain no comfort with the arrogant anti civil right violation HAWKS, also apparently MANY of your attorneys, and certainly not Merck… but there is a group of individuals in a similar situation and KNOW what you are going through. In some ways they are on the leading edge of knowing what the heck is going on and how Vioxx is being used by the MASS TORT LITIGATION REFORM hawsks who wish to pound the MASS TORT system to the ground, without a care in he world of legal fairness or your legal rights.
...
Whether - whether an "opt-in" who was also "boxed-in" -or- and "opt-out" who Merck is trying to "box-out"; if you are a vIOXX Plaintiff and wish to become part of a dialogue of nearly 350 individuals and growing, WHO CERTAINLY HAVE NOT GIVEN UP and are a bunch of decent, compassionate, human beings - all damaged by (allegedly…) Merck, in the VIOXX debacle...if you are a Plainitiff feel free to submit a request to join the VIOXX PLAINTIFF EDUCATION GROUP (VPEG) - at:
…
http://groups.yahoo.com/group/MerckSettlement/
…
Posted by: Dennis Harrison | June 27, 2008 02:35 PM
If it wasn't so utterly tragic and murderous, one would almost have to just stare in wonder of the great planning Merck has done…don't think for a minute that all - decisions to let people die, only pull the drug when the last potential incremental profit was made, using the major mi/strokes to also cover up other problems (the "veil of cover"), use the "engine" of the MASS TORT "reform" craziness to drive towards a completely unfair and weird private agreement, the clogging of the courts by moving cases from the states to the Federal under the MDL "right" Merck won (and misused) to clog the dockets, use that docket clogging for scare purposes, dilution and stealing of civil rights, and so, so much more - I have to stop or this gets too long. But I have much written on what Merck's strategy might be - 9 months BEFORE the private “deal” - or is the word “deal supposed” to be "settlement"; and the similarity is alarming. To advance my own case, I studied Merck's moves, analyzed their cost/beenfis, and much more...it wasn’t too difficult to understand their comprehensive strategy; it was however, much to be puzzled over as way too many just “rolled over”, and did not exemplify the repudiation that they may have.
...
It is ALARMING, actually that is just so, so understated…it is miniscule in the larger scheme of what is happening - and we must hope that some smart, tough, no-nonsene legal minds, scholars, constitutional experts who WANT to protect the public's rights, will yet converge - and guess what? - it ain't over! - at least Canada has a bit more smarts..
...
The absolute sadness is the thousands and thousands of Vioxx victims, and that is what they are, who not only have had to endure Merck's (alleged) neglect, deceit and fraud and suffer heart attacks; but now are going through the ups and downs of getting shafted again!
...
Hey MASS TORT REFORM - you are still "full of yourselves and your cockiness is just so nutty; I really don't think you will have your way on tghis when the dust settles...butg in the meantime, I guess you shall maintain your smugness and scorn of the Vioxx victims while you have coffee with the attorneys who deserted their clients legal rights in droves...go ahead, have your fun for now; it is more than apparent that mean spirit is in your heart and minds...
…
Dennis Harrison
MBA - BGS
…
Are you also one of the disgusted, confused, and worse...litigants who feel that you have been boxed in to the MERCK "settlement" - and there are many ways.... Are you really hoping to find some compassionate individuals to dialogue with, an especially those in a similar or exact situation. then read on....
….
Vioxx Settlement - a group to relate to...heart - mi - stroke - bone - spine
…..
Mass Tort reform “hawks”, as well as many trial attorneys appear hopeful that the MSA (Master Settlement Agreement) is a “model”. Rather than perform their jobs as they were trained, they can convert much of it to mere paper pushing and administration; with interests of their clients being secondary to their own – there has been much written about that. However, surely their intellectual capacity ought to recognize that a rigorous, or at least a reasonable and fair set of standards should be the rule.
…..
There is a VIOXX EDUCATION PLAINTIFF EDUCATION GROUP (VPEG) for Vioxx Plaintiffs (now 340 and growing people). Regardless of the “settlement” official position - "things are not as they always appear...", the group REMAINS very, very relative and is gaining increasing “name brand recognition”. VPEG concerns, etc., need to be dealt with, and VPEG is becoming one of the lynchpins in converting a very unfair private settlement to what it should be…
…
VIOXX victims - we know you shall gain no comfort with the arrogant anti civil right violation HAWKS, also apparently MANY of your attorneys, and certainly not Merck… but there is a group of individuals in a similar situation and KNOW what you are going through. In some ways they are on the leading edge of knowing what the heck is going on and how Vioxx is being used by the MASS TORT LITIGATION REFORM hawsks who wish to pound the MASS TORT system to the ground, without a care in he world of legal fairness or your legal rights.
...
Whether - whether an "opt-in" who was also "boxed-in" -or- and "opt-out" who Merck is trying to "box-out"; if you are a vIOXX Plaintiff and wish to become part of a dialogue of nearly 350 individuals and growing, WHO CERTAINLY HAVE NOT GIVEN UP and are a bunch of decent, compassionate, human beings - all damaged by (allegedly…) Merck, in the VIOXX debacle...if you are a Plainitiff feel free to submit a request to join the VIOXX PLAINTIFF EDUCATION GROUP (VPEG) - at:
…
http://groups.yahoo.com/group/MerckSettlement/
…
Posted by: Dennis Harrison | June 27, 2008 02:38 PM
What another tragedy - just want in hex does the government think it is doing. There seems to be an increasingly number of mean spirited individuals, organizations, and so much more - with pure profit or other motives just overwhelming any concept of humanity. Vioxx is an example of (allegedly) calculated - I mean cost/benefit of how many would die IF proper warnings were withheld vs. the profit of not even warning. I don't mean an overall assessment of costs/benefits to the whole - which is controversial in itself, but at least looks for the benefit of the whole; I mean the actual decision not to warn of something known...this kind of thing happens in so many ways, like the main topic here, and so much more. Civil rights, more than is commonly - or even hardly, known - are just sliding down the toilet. In re to Vioxx, I would like to take the opportunity is I am allowed to mention the following group - VPEG - which is attempting to reverse the terrible, terrible "settlement" in which the average heart attack victim - lives in shatters more often than not, a reduced life expectancy, more problems likely in many cases - receiving such a pittance, let alone having to sign all their potential future rights away. The "settlement" at near $5B sounds like a lot? - Divide it by the 50,000+ affected and find that average is $100,000. Ok adjust it for some that should not receive compensation, but then REDUCE it for paying back hospitals (which Merck, not the litigants, should be doing by the way), what amounts to unearned income by many attorneys - who did NOT do their jobs and were hoping for a settlement so they could say - take it or leave it, and NOT do their work - so much on this I won't go farther though, too much too write.... the WILD WEST APPROACH of PRIVATE SETTLEMENTS must be stopped, and the Vioxx litigation is a line in the sand...please take note...
Posted by: badbonehealing | June 27, 2008 02:41 PM
SENT TO MDL - APRIL 28, 2008
NOTE: I suggest that the door is open for claiming civil rights violations and BUILDING YOUR COERCISON CASES...
... Merck's strategy, exploitation of the MDL process, riding the public's very much misunderstood thoughts on legal reform, and lobbying for Mass Tort reform turned into privatization, continues to work! … occurred with a major reason for an attorney to gain their clients participation (a very large $ payback versus the work done and virtually eliminating attorney risk), as well as much work done by the negotiating parties to ensure that most attorneys would simply recommend that their clients accept the terms of the settlement. At the same time, it seemed to be a goal of the settlement terms to make it as hard as possible to "opt-out" of the agreement. VPEG is strewn with "opt-ins" who assuredly did so only under undue stress. The artificial process of medical assessment (the GATE process) also provided a convenient method for attorneys to claim that they were being ethical.
Witnessing so many individuals, in spite of vehement objection and good reason not to accept the settlement, finally doing so, Mr. Harrison is reminded of the 5 stages of grief model
- denial, anger, bargaining, depression, acceptance - are also transferable to personal change and emotional upset resulting from factors other than death and dying: Dr Elisabeth Kübler- www.businessballs.com/elisabeth_kubler_ross_five_stages_of_grief.htm
There is no doubt that too many "opt-ins", regardless of what they signed, in reality felt that they were boxed in from several directions. Much more often than not, they are convinced that this is by design, not via chance. "Coerced", "brow-beaten", "fear mongered" and "abandoned" became normal VPEG lexicon. In spite of the disgust and rage of the litigants, accompanied by vehement denial that they would ever accept this "pittance" most litigants go on to the last of the 5 stages of grief - ACCEPTANCE. However, this "acceptance' came with vows to somehow find a way(s) to make it known that "accepting" was basically the equivalent of being "pummeled". One is very hard pressed to find even just a few members that accepted based upon appropriate representation, let alone "happy" with the settlement. Acceptance is almost exclusively the domain of just giving up, feeling that something is better than nothing, having too many financial and other hardships (from their MI/stroked problems) to continue otherwise, and the realization that unfairly they were being effectively denied reasonable efforts to gain legal representation elsewhere.
bones
Dennis Harrison
Posted by: Dennis Harrison | October 2, 2008 11:02 PM
By Been there, done that Have been coerced and under duress From Piscataway, NJ, 10/02/2008
THIS was provided, a while back to me. I am pro se, and do not need to worry about attorney recrimination, like so, so many I hear of all the time... So, I had requested if I could POST THIS concise, direct blog. And it DOES represent a majority view, by the way.
______________________________________
Subject: [MerckSettlement] My Post to - PUBLIC CITIZEN
Has your group looked at the so called VIOXX settlement at all? It seems like a cause that would interest you. They say it is the model for product liability cases if the future. The settlement is
horribly skewed towards Merck. It was "negotiated" by a small group of attorneys in a back room someplace. It forced is victims to sign away our rights and settle for "a pig in a poke" because we don't yet
have any idea of what if anything we'll be getting. We are penalized for any and just about all preexisting conditions - when in fact had
there been appropriate warnings our doctors would not have Rx'd Vioxx. (Much like birth control pills of today and smokers.) So many of us have completely lost our lives as we knew them and now we
are being victimized yet again by Merck aided and abetted by our lawyers who were supposed to be advocating for us. Personally? I am
in the MI group, bypass surgery, and several stents later I am still disabled (since 2001) and unable to work. I guess I must say that I am lucky - I still have my life and this drug killed and maimed (the
stroke folks) so many. The human toll is huge and Merck and the lawyers could care less. Merck wants to minimize what has happened to us and our lawyers are salivating in anticipation of a big payday
for little to no work. There is a group on Yahoo where many of us have told our stories - vPEG (vIOXX Plaintiff's Education Group), in addition to related goups AvPEG and RvPEG (Action, and RICO respectfully Plaintiff Education Group)
Posted by: Proxy for a very hurt MI patient | October 3, 2008 05:33 PM